Intercontinental Exchange Earnings: Impressive Energy Futures Growth Supports Firm-Wide Results

Wide-moat-rated Intercontinental Exchange reported decent third-quarter earnings that were in line with our expectations. Net revenue increased 9% from last year and 6% from last quarter to $2 billion. Meanwhile, operating income fell 7% to $845 million, mostly due to $155 million in integration costs from the closing of the Black Knight acquisition. As we incorporate these results, we do not plan to materially alter our $137 fair value estimate for Intercontinental Exchange. We see the shares as undervalued at current prices.