Zacks Rank: ICE carries a Zacks Rank #2 at present. Intercontinental Exchange Inc. (ICE) is expected to register an improvement in its top and bottom lines when it reports first-quarter 2025 results on May 1, before market open. The Zacks Consensus Estimate for ICE's first-quarter revenues is pegged at $2.46 billion, indicating 7.4% growth from the year-ago reported figure. Factors Likely to Shape Q1 Results of ICE Continued strong trends across fixed-income data and analytics and an acceleration in growth ...

Market Catalysts - Catalysts are crucial in investing, as they can lead to significant price movements in stocks, such as regional banks and biotechs surging on takeover offers [3][4] - A major event scheduled for May 7 is anticipated to trigger substantial market changes, with preparations being made for this potential shift [4][22] CME Group Inc. (CME) - CME Group reported a 10% increase in revenues to $1.6 billion and a 12% rise in earnings per share (EPS) to $2.80 [7] - The exchange has seen a surge in trading volumes, averaging 40 million contracts daily in April, compared to 29.8 million in the first quarter [8] Intuit Inc. (INTU) - Intuit is expected to benefit from upcoming tax changes, with shares having previously risen 38% during the first year of Trump's presidency [11][12] - The stock trades at a forward earnings multiple of 30X, which is 15% below its five-year average, indicating potential for growth as tax discussions progress [14] U.S. Bancorp (USB) - U.S. Bancorp is recognized for its strong management and conservative underwriting, with a return on equity (ROE) of 13%, significantly above the industry median [15] - Recent market fears have pushed USB shares to low levels, presenting an opportunity for a potential "V"-shaped recovery, with expected upside of 25% to 50% [17][18] Market Cash Reserves - Investors currently hold a record $7 trillion in cash, with private equity alone holding at least $2.62 trillion, indicating a potential influx into the stock market [21]

Summary of Key Points Core Viewpoint - The total short interest in Nasdaq securities has increased slightly, indicating a potential shift in market sentiment towards short selling as of April 15, 2025 Group 1: Nasdaq Global Market - Short interest in 3,143 Nasdaq Global Market securities totaled 13,211,633,004 shares, up from 13,072,444,217 shares in the previous reporting period [1] - The mid-April short interest represents 1.76 days of average daily volume, a decrease from 2.64 days in the prior reporting period [1] Group 2: Nasdaq Capital Market - Short interest in 1,634 securities on The Nasdaq Capital Market totaled 2,609,354,721 shares, down from 2,682,510,166 shares in the previous reporting period [2] - This represents an average daily volume of 1.00 day, compared to 1.12 days in the prior reporting period [2] Group 3: Overall Nasdaq Securities - Total short interest across all 4,777 Nasdaq securities reached 15,820,987,725 shares, an increase from 15,754,954,383 shares in the previous reporting period [3] - The average daily volume for this total is 1.52 days, down from 2.14 days in the prior reporting period [3] Group 4: Short Sale Definition - A short sale is defined as the sale of a security that the seller does not own or any sale consummated by the delivery of a borrowed security [4]

Core Viewpoint - Nasdaq reported strong first-quarter 2025 results with adjusted earnings per share of 79 cents, exceeding estimates and showing a year-over-year improvement of 25.4% driven by higher revenues and organic growth [1] Financial Performance - Nasdaq's net revenues reached $1.2 billion, marking a 12.5% increase year over year and slightly surpassing estimates by 0.1% [2] - Annualized Recurring Revenue (ARR) grew by 8% year over year to $2.8 billion, with organic growth at 9% [2] - Annualized SaaS revenues increased by 14%, accounting for 37% of ARR [2] - Capital Access Platforms' revenues were $479 million, up 11%, driven by growth across all business lines [2] - Financial Technology revenues were $395 million, reflecting a 10% increase [3] - Solutions business revenues rose 11% year over year to $947 million, supported by strong growth in Index and Financial Technology [3] - Market Services net revenues increased by 19% year over year to $281 million, exceeding estimates [3] Operating Expenses and Income - Adjusted operating expenses were $555 million, up 5.9% year over year, reflecting higher investments in technology and personnel [4] - Adjusted operating income increased by 15% year over year to $682 million, with an operating margin of 55%, expanding by 200 basis points [4] Market Activity - Nasdaq welcomed 170 new company listings in the quarter, including 63 initial public offerings, bringing the total number of listed companies to 4,139 [5] Financial Position - As of March 31, 2025, Nasdaq had cash and cash equivalents of $708 million, a 17% increase from the end of 2024 [6] - Long-term debt decreased by 1.7% to $8.9 billion [6] - Cash flow from operations for the quarter was $663 million [6] Capital Deployment - Nasdaq returned $138 million to shareholders through dividends and $115 million through stock repurchases in the first quarter [7] - The board approved a dividend of 27 cents per share, a 13% increase, to be paid on June 27, 2025 [7] - $1.6 billion remains under the board-authorized share repurchase program as of March 31, 2025 [8] Guidance - Nasdaq expects 2025 non-GAAP operating expenses to be between $2,265 million and $2,325 million, slightly adjusted from previous guidance [9] - The forecasted non-GAAP tax rate for 2025 is projected to be between 22.5% and 24.5% [9]

Financial Highlights - Nasdaq's net revenue reached $1.237 billion, an increase of 11% year-over-year[18] - Solutions revenue grew to $947 million, representing a 9% increase year-over-year[18] - Operating income increased by 15% year-over-year to $682 million[18] - Diluted EPS increased by 24% year-over-year to $0.79[18] - Annualized Recurring Revenue (ARR) increased by 8% year-over-year to $2.831 billion[18] - Annualized SaaS revenue increased by 14% year-over-year to $1.061 billion[18] Segment Performance - Capital Access Platforms revenue increased by 11% adjusted year-over-year, with Index revenue up by 26% and Data & Listing revenue up by 4%[40] - Financial Technology revenue increased by 10% adjusted year-over-year, driven by a 21% increase in Financial Crime Management Technology revenue[40] - Market Services revenue increased by 19% adjusted year-over-year, driven by record volumes in U.S cash equities and derivatives[40] Operational Highlights - Index average ETP AUM increased year-over-year to $662 billion[24] - Nasdaq listed 45 operating companies, raising nearly $5 billion in proceeds[13]

Core Points - Nasdaq, Inc. has declared a quarterly dividend of $0.27 per share, representing a 13% increase from the previous quarter [1] - The dividend is scheduled to be paid on June 27, 2025, to shareholders of record as of June 13, 2025 [1] - Future dividend declarations and payment dates are subject to the approval of the Board of Directors [1] Company Overview - Nasdaq is a leading global technology company that serves corporate clients, investment managers, banks, brokers, and exchange operators [2] - The company aims to enhance liquidity, transparency, and integrity in the global economy through its diverse offerings, including data, analytics, software, and exchange capabilities [2] - Nasdaq provides client-centric services that enable clients to optimize and execute their business vision with confidence [2]

Core Insights - Nasdaq, Inc. reported strong financial results for Q1 2025, highlighting resilience and growth across all divisions despite a rapidly changing environment [2][3][5] Financial Performance - Net revenue for Q1 2025 was $1,237 million, an increase of 11% year-over-year, with adjusted net revenue growth of 12.5% [5][6] - Solutions revenue reached $947 million, up 9% year-over-year, and 11% on an adjusted basis, driven by strong growth in Index and Financial Technology [5][6] - Market Services net revenue was $281 million, reflecting a 19% increase compared to the previous year [10] - Non-GAAP operating income was $682 million, a 15% increase year-over-year, with a non-GAAP operating margin of 55% [40] - GAAP diluted earnings per share (EPS) grew 69% to $0.68, while non-GAAP diluted EPS increased 24% to $0.79 [5][29] Annualized Recurring Revenue (ARR) - ARR for Q1 2025 was $2,831 million, an 8% increase year-over-year, with organic growth of 9% [5][6] - Financial Technology ARR grew 12% on an organic basis, indicating strong client engagement and product adoption [11] Strategic Initiatives - Nasdaq is focused on capital allocation strategies, including investing in organic growth, reducing debt, and share repurchases, returning $138 million to shareholders through dividends and $115 million through stock repurchases in Q1 2025 [3][10] - The company aims to enhance its market access with plans for 24/5 trading by 2026, pending regulatory approval [14] - Nasdaq's partnership with Amazon Web Services aims to provide new cloud-based solutions, enhancing its Financial Technology and Market Services divisions [14] Market Position and Client Engagement - Nasdaq maintained its leadership in listings, welcoming 45 operating company listings that raised nearly $5 billion in proceeds during the quarter [14] - The company achieved record cash equities and derivatives volumes in the U.S., with significant market share growth [14] - Nasdaq Verafin's Co-Pilot tool usage grew by 20% sequentially, demonstrating the value of its innovative solutions [14]

Core Insights - CME Group reported first-quarter 2025 operating income of $2.80 per share, exceeding the Zacks Consensus Estimate by 0.4% and showing a 12% year-over-year improvement [1] - The quarterly results were driven by increased revenues from higher clearing and transaction fees, as well as market data and information services fees, with increased volatility contributing to higher volumes [1] Performance in Detail - CME Group's revenues reached $1.6 billion, marking a 10.4% year-over-year increase, primarily due to higher clearing and transaction fees (up 10.6%), market data and information services (up 10.9%), and other revenues (up 6.7%) [2] - However, the top line fell short of the Zacks Consensus Estimate by 0.5% [2] Expense and Income Analysis - Total expenses rose by 1.1% year over year to $534.3 million, driven by higher compensation and benefits, technology costs, and licensing fees, exceeding the estimate of $492.4 million [3] - Operating income increased by 15.5% from the prior-year quarter to $1.1 billion, surpassing the estimate of $1 billion [3] Volume and Market Activity - Average daily volume (ADV) reached a record 29.8 million contracts, with commodities growing by 19% and financials increasing by 12% [4] - ADV outside the U.S. also hit a new high of 8.8 million contracts, up 19% year over year, with the total average rate per contract at 68.6 cents [4] Financial Update - As of March 31, 2025, CME Group had $1.5 billion in cash and marketable securities, a decrease of 49.5% from the end of 2024 [5] - Long-term debt stood at $3.4 billion, an increase of 27.7% from the end of 2024 [5] - Shareholders' equity was valued at $26.5 billion, reflecting a 2% increase from the end of 2024 [5] Capital Deployment - CME Group declared dividends totaling $2.6 billion in the first quarter of 2025, having returned over $28.6 billion to shareholders since the implementation of its variable dividend policy in early 2012 [6] Zacks Rank - CME currently holds a Zacks Rank 1 (Strong Buy) [7]

CME Group Inc. Q1 2025 Earnings Conference Call April 23, 2025 8:30 AM ET Company Participants Adam Minick - Investor Relations Terry Duffy - Chairman & Chief Executive Officer Suzanne Sprague - Chief Operating Officer & Head, Risk and Clearing Sunil Cutinho - Chief Information Officer Lynne Fitzpatrick - Chief Financial Officer Derek Sammann - Global Head, Commodities Julie Winkler - Chief Commercial Officer Mike Dennis - Global Head, Fixed Income Conference Call Participants Kyle Voigt - KBW Dan Fannon - ...

Core Insights - CME Group reported $1.64 billion in revenue for Q1 2025, a year-over-year increase of 10.4% [1] - The EPS for the same period was $2.80, compared to $2.50 a year ago, indicating a positive growth trend [1] - Revenue slightly missed the Zacks Consensus Estimate of $1.65 billion, resulting in a surprise of -0.46% [1] - The company delivered an EPS surprise of +0.36%, with the consensus EPS estimate being $2.79 [1] Performance Metrics - CME's average daily volume was 29.77 million, exceeding the five-analyst average estimate of 29.27 million [4] - Average daily volume for interest rates was 15.03 million, surpassing the estimate of 14.93 million [4] - Average daily volume for equity indexes was 8 million, compared to the estimate of 7.77 million [4] - Average daily volume for foreign exchange was 1.15 million, above the estimate of 1.13 million [4] - Average daily volume for energy was 2.9 million, compared to the estimate of 2.83 million [4] - Average daily volume for agricultural commodities was 1.96 million, exceeding the estimate of 1.91 million [4] Revenue Breakdown - Revenues from clearing and transaction fees were $1.34 billion, slightly below the average estimate of $1.35 billion, but represented a year-over-year change of +10.6% [4] - Revenues from other sources were $110.50 million, compared to the estimate of $112.11 million, reflecting a +6.7% change year-over-year [4] - Revenues from market data and information services were $194.50 million, exceeding the estimate of $186.41 million, with a +10.9% change year-over-year [4] Stock Performance - CME shares returned +1.3% over the past month, while the Zacks S&P 500 composite declined by -6.6% [3] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating potential for outperformance in the near term [3]