Intercontinental Exchange Closes 2022 With a Decent Q4; Weak Mortgage Industry Remains a Headwind

Wide-moat-rated Intercontinental Exchange reported decent fourth-quarter results that were largely in line with our expectations. The firm's net revenue fell 3.9% year over year to $1.77 billion, while earnings per share dropped 6.7% from last year to $1.25. The decrease in bottom-line and top-line results can be largely traced to the firm’s energy futures revenue and its mortgage technology business, which was impacted by lower mortgage origination volume industrywide. On a more positive note, the decrease in revenue was entirely from transactional sources, with the firm’s more reliable recurring revenue increasing 4% to $940 million. As we incorporate these results, we are maintaining our $130 fair value estimate.