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CME Group (CME) Q2 Earnings Top Estimates, Revenues Miss

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CME Group Inc. (CME - Free Report) reported second-quarter 2020 adjusted earnings per share of $1.63, which beat the Zacks Consensus Estimate by 0.6%. The bottom line decreased 7.4% year over year due to lower clearing and transaction fees. Average daily volume decreased in four out of the six products lines.

Performance in Detail

CME Group’s revenues of $1.2 billion decreased 7.1% year over year. The year-over-year decrease is primarily attributable to lower clearing and transaction fees (down 10.6% year over year),  partially offset by higher market data and information services (up nearly 5% year over year), and other (up nearly 16% from the prior-year period). The top line missed the Zacks Consensus Estimate by 1.1%.

Total expenses decreased 5.1% year over year to $544.8 million during the reported quarter, attributable to lower depreciation and amortization as well as other expenses.

Operating income decreased 8.5% from the prior-year quarter to $637.5 million.

Average daily volume decreased 15.9% year over year to 17.6 million contracts in the quarter. Average rate per contract increased 5.5%.

CME Group Inc. Price, Consensus and EPS Surprise

 

CME Group Inc. Price, Consensus and EPS Surprise

CME Group Inc. price-consensus-eps-surprise-chart | CME Group Inc. Quote

Financial Update

As of Jun 30, 2020, CME Group had $1.5 billion of cash and marketable securities, down 8.6% from 2019 end. As of Jun 30, 2019, long-term debt of $3.4 billion decreased 8.1% from 2018 end.

As of Jun 30, 2020, the company had total assets worth $117.2 billion, up 55.8% from 2019 end.

Capital Deployment

CME Group paid out $304 million in dividends in the second quarter.  The company has returned about $13.8 billion to shareholders in the form of dividends since the implementation of the variable dividend policy in early 2012.

Zacks Rank

CME Group currently carries a Zacks Rank #4 (Sell).  

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Securities Exchange Industry Players

Second-quarter earnings of MarketAxess Holdings (MKTX - Free Report) and Nasdaq (NDAQ - Free Report) beat the Zacks Consensus Estimate.

Upcoming Release

Intercontinental Exchange (ICE - Free Report) is slated to report its second-quarter results on Jul 30 before market open. The Zacks Consensus Estimate for earnings is pegged at $1.04 per share.

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