Intercontinental Exchange Earnings: Strong Energy Futures Revenue Drives Solid Results

Wide-moat-rated Intercontinental Exchange reported strong first-quarter results that were in line with our expectations as it benefited from continued strength in energy futures trading. Net revenue increased 21%, or 5% pro forma for the acquisition of Black Knight, to $2.3 billion. Diluted earnings per share increased 14% to $1.33. As we incorporate these results, we do not plan to materially alter our $140 fair value estimate. We see the shares as modestly undervalued at the current price.