Intercontinental Exchange 3Q Profit Falls as Company Focuses On Ellie Mae Deal

By Micah Maidenberg

Intercontinental Exchange Inc. reported a weaker profit as it worked to absorb Ellie Mae, a cloud-based platform for lenders originating mortgages.

Intercontinental, which operates stock exchanges and clearing houses and provides data for various markets, on Thursday reported its profit slipped to $390 million, or 71 cents a share, from $529 million, or 94 cents a share, for the year-earlier period.

Compensation costs rose 14% year over year, the company said. Intercontinental recorded $76 million in acquisition and integration costs in the quarter, weighing on earnings. The company purchased Ellie Mae Sept. 4.

Its adjusted profit of $1.03 a share was ahead of expectations from analysts by 4 cents, according to FactSet.

Revenue at the owner of the New York Stock Exchange rose to $1.41 billion from $1.34 billion, less transaction-based expenses, and was more than the $1.38 billion consensus estimate for the latest period. Third-quarter revenue included $75 million related to Ellie Mae.

Write to Micah Maidenberg at [e-mail]

(END) Dow Jones Newswires

October 29, 2020 08:04 ET (12:04 GMT)

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