ICE's 3Q profit beats on lower tax rate

Associated Press

ATLANTA (AP) — IntercontinentalExchange posted a decline in third-quarter profit as expected, but topped Wall Street predictions thanks to a lower tax rate.

Shares in the Atlanta, company rose Monday on the news.

The commodity futures and derivatives exchange operator, known as ICE, faced lower trading volume during the quarter in its North American natural gas and power contracts. Its profitability, however, got a boost from a lower tax rate and reduced expenses.

The company earned $131.1 million, or $1.79 per share, for the quarter that ended Sept. 30. That's down from $132.6 million, or $1.80 per share, earned in the third quarter last year. Its revenue fell 5 percent to $323.2 million.

ICE's profit beat market expectations for the period but its revenue fell short. Analysts polled by FactSet were expecting the company to earn $1.73 per share on revenue of $325.7 million.

Shares of IntercontinentalExchange Inc. rose $2.83, more than 2 percent, to $132.66 by midday. Its stock remains in the middle of its 52-week trading range of $110.67 to $142.75.