Global markets operator Intercontinental Exchange Inc. (ICE), Wednesday reported an eight percent drop in first-quarter profit, hurt mainly by lower revenues and costs related to NYSE Euronext acquisition.
Atlanta, Georgia-based ICE's first quarter profit dropped to $135.4 million or $1.85 per share from last year's $147.87 million or $2.02 per share.
Adjusted earnings, which exclude costs related to the acquisition of NYSE Euronext and other items, were $148.8 million or $2.03 per share. On average, 15 analysts polled by Thomson Reuters expected earnings of $1.97 per share for the quarter. Analysts' estimates typically exclude one-time items.
In December, ICE agreed to acquire NYSE Euronext Inc. (NYX), the parent of the New York Stock Exchange, for about $8.2 billion. Acquisition-related transaction costs for the quarter increased to $17.9 million from $3.5 million last year. ICE expects to close the deal in the second half of the year, and has scheduled a special stockholder meeting for June 3 to approve the acquisition.
Revenues for the quarter declined 4 percent to $351.9 million from $365.2 million last year. Analysts had a consensus revenue estimate of $348.26 million for the quarter.
Transaction and clearing fee revenues, which represents majority of the business, dropped 7 percent from last year. Average daily volume in ICE's futures business was 3.6 million contracts, down 4 percent.
Commenting on the results, Chief Executive Jeffrey Sprecher said, "Amid ongoing regulatory uncertainty, we continue to expand our markets and services to customers. We executed on many initiatives during the quarter, including the completion of the ICE Endex transaction, which extends our reach in the global natural gas markets."
ICE expects acquisition expense for the second quarter of $10 million to $12 million related to the NYSE Euronext transaction.
ICE is currently trading at $168.94, up $6.01 or 3.69%, on a volume of 1.1 million shares on the NYSE.
For comments and feedback: editorial@rttnews.com