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NYSE-parent ICE beats profit views, helped by boost in energy trading

Pritam Biswas and Lewis Krauskopf
Updated ·2 min read
A screen displays the logo and ticker symbol for Intercontinental Exchange, Inc. on the floor of the NYSE

By Pritam Biswas and Lewis Krauskopf

(Reuters) -Intercontinental Exchange on Thursday reported a quarterly profit rise of 9% that topped analyst estimates, helped by robust trading in energy markets.

The parent of the New York Stock Exchange and operator of other exchanges reported revenue from trading in energy-related products surged 32% in the second quarter to $469 million.

Total revenue from ICE's exchange business, the biggest component of its income base, jumped 14% to $1.25 billion in the quarter.

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

"There are still lots of geopolitical risks and ... uncertainty in the world that drive the volatility and the hedging need for energy prices," said Owen Lau, analyst at Oppenheimer, who called ICE's energy trading business a standout performer in the company's results.

ICE shares rose 0.7% in morning trading and hit an intraday all-time high.

The stock has gained more than 18% so far in 2024, including a big jump during the past month. Lau said the shares recently also have benefited from increasing expectations the U.S. Federal Reserve will cut interest rates in the coming months, which stands to help ICE's mortgage technology business.

The company reported second-quarter adjusted earnings of $876 million, or $1.52 per share. Analysts had expected a profit of $1.49 per share.

The listings unit, a part of ICE's exchange segment, had 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.

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 listed in the second quarter.

(Reporting by Pritam Biswas in Bengaluru and Lewis Krauskopf in New York; Editing by Pooja Desai and Will Dunham)