Benzinga Pro data, Intercontinental Exchange (NYSE:ICE) reported Q3 sales of $1.81 billion. Earnings fell to a loss of $175.00 million, resulting in a 130.92% decrease from last quarter. Intercontinental Exchange earned $566.00 million, and sales totaled $1.81 billion in Q2.

Why Is ROIC Significant?

Return on Invested Capital is a measure of yearly pre-tax profit relative to capital invested by a business. Changes in earnings and sales indicate shifts in a company's ROIC. A higher ROIC is generally representative of successful growth of a company and is a sign of higher earnings per share in the future. A low or negative ROIC suggests the opposite. In Q3, Intercontinental Exchange posted an ROIC of 2.3%.

Keep in mind, while ROIC is a good measure of a company's recent performance, it is not a highly reliable predictor of a company's earnings or sales in the near future.

For Intercontinental Exchange, the positive return on invested capital ratio of 2.3% suggests that management is allocating their capital effectively. Effective capital allocation is a positive indicator that a company will achieve more durable success and favorable long-term returns.

Analyst Predictions

Intercontinental Exchange reported Q3 earnings per share at $1.31/share, which beat analyst predictions of $1.27/share.

This article was generated by Benzinga's automated content engine and reviewed by an editor.