🥇 First rule of investing? Know when to save! Up to 55% off InvestingPro before BLACK FRIDAYCLAIM SALE

NYSE-parent ICE beats second-quarter profit estimates on strong trading

Published 01/08/2024, 09:41 pm
Updated 01/08/2024, 10:25 pm
© Reuters. A screen displays the logo and ticker symbol for Intercontinental Exchange, Inc. on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., November 3, 2016.  REUTERS/Brendan McDermid/ File Photo
ICE
-
NG
-

(Reuters) - Intercontinental Exchange reported an estimate-beating profit rise of 9% in the second quarter on Thursday, helped by strong performance in its exchange business as trading remained robust.

The conflict in the Middle East has changed the landscape for global commodity and energy markets, significantly raising volatility and bumping up trades as investors assess the impact of shifting supply chains.

Trading volumes at exchanges typically do better in times of market fluctuation, as investors rejig portfolios or when there is a broad-based rally, which encourages riskier trades.

Energy trading volumes surged 31% in the second quarter, with gains across segments including oil, gasoil as well as other crude and refined products. Natural gas average daily volumes jumped 36%.

Total revenue from ICE (NYSE:ICE)'s exchange business, the biggest component of its income base, jumped to $1.25 billion in the reported quarter, up from $1.09 billion in the year-ago period.

High interest rates have dampened investor expectations of a rebound in the U.S. IPO market in 2024, which has been marked by uneven post-debut performances of some high-profile names that came forward with new listings in the second quarter.

Microsoft-backed cybersecurity company Rubrik opened at $38.6 per share in its April market debut, but closed nearly 4% below that price on Wednesday.

The listings unit, a part of ICE's exchange segment, saw a 3% fall in second-quarter revenue, even though the NYSE has raked in more from IPO proceeds in the first half of 2024, compared to the last two years.

© Reuters. A screen displays the logo and ticker symbol for Intercontinental Exchange, Inc. on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., November 3, 2016.  REUTERS/Brendan McDermid/ File Photo

The company reported adjusted earnings of $876 million, or $1.52 per share, in the quarter ended June 30, compared to $802 million, or $1.43 apiece last year.

Analysts had expected a profit of $1.49 per share in the second quarter.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.