We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is CME (CME) Down 12.8% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for CME Group (CME - Free Report) . Shares have lost about 12.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is CME due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
CME Group Q1 Earnings and Revenues Beat Estimates
CME Group reported first-quarter 2022 adjusted earnings per share of $2.11, which beat the Zacks Consensus Estimate of $2.00. The bottom line increased 17.9% year over year due to higher clearing and transaction fees and market data and information services.
Average daily volume increased in five out of the six products lines.
Performance in Detail
CME Group’s revenues of $1.3 billion increased 5% year over year. The year-over-year increase was primarily due to higher clearing and transaction fees (up 13% year over year) and market data and information services (up 5.2% year over year). The top line beat the Zacks Consensus Estimate by 5%.
Total expenses decreased 7.7% year over year to $487.5 million quarter, attributable to lower compensation and benefits, technology, professional fees and outside services, depreciation and amortization and amortization of purchased intangibles.
Operating income increased 18.5% from the prior-year quarter to $859.1 million.
ADV was 25.9 million contracts, including non-U.S. ADV of 7.3 million contracts, led by 28% growth in Latin America, 22% in Asia and 17% in EMEA.
Financial Update
As of Mar 31, 2022, CME Group had $2.9 billion of cash and marketable securities, down 26.9% from 2021 end. As of Mar 31, 2022, long-term debt of $3.4 billion increased 27.5% from 2021 end.
As of Mar 31, 2022, CME had total equity worth $27.7 billion, up 1.2% from 2021 end.
Capital Deployment
CME Group paid $1.5 billion in dividends, taking the tally to $18 billion returned to shareholders in the form of dividends since the implementation of the variable dividend policy in early 2012.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
At this time, CME has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, CME has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
CME belongs to the Zacks Securities and Exchanges industry. Another stock from the same industry, MarketAxess (MKTX - Free Report) , has gained 3.9% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
MarketAxess reported revenues of $186.06 million in the last reported quarter, representing a year-over-year change of -4.8%. EPS of $1.73 for the same period compares with $2.11 a year ago.
MarketAxess is expected to post earnings of $1.79 per share for the current quarter, representing a year-over-year change of +1.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for MarketAxess. Also, the stock has a VGM Score of F.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is CME (CME) Down 12.8% Since Last Earnings Report?
It has been about a month since the last earnings report for CME Group (CME - Free Report) . Shares have lost about 12.8% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is CME due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
CME Group Q1 Earnings and Revenues Beat Estimates
CME Group reported first-quarter 2022 adjusted earnings per share of $2.11, which beat the Zacks Consensus Estimate of $2.00. The bottom line increased 17.9% year over year due to higher clearing and transaction fees and market data and information services.
Average daily volume increased in five out of the six products lines.
Performance in Detail
CME Group’s revenues of $1.3 billion increased 5% year over year. The year-over-year increase was primarily due to higher clearing and transaction fees (up 13% year over year) and market data and information services (up 5.2% year over year). The top line beat the Zacks Consensus Estimate by 5%.
Total expenses decreased 7.7% year over year to $487.5 million quarter, attributable to lower compensation and benefits, technology, professional fees and outside services, depreciation and amortization and amortization of purchased intangibles.
Operating income increased 18.5% from the prior-year quarter to $859.1 million.
ADV was 25.9 million contracts, including non-U.S. ADV of 7.3 million contracts, led by 28% growth in Latin America, 22% in Asia and 17% in EMEA.
Financial Update
As of Mar 31, 2022, CME Group had $2.9 billion of cash and marketable securities, down 26.9% from 2021 end. As of Mar 31, 2022, long-term debt of $3.4 billion increased 27.5% from 2021 end.
As of Mar 31, 2022, CME had total equity worth $27.7 billion, up 1.2% from 2021 end.
Capital Deployment
CME Group paid $1.5 billion in dividends, taking the tally to $18 billion returned to shareholders in the form of dividends since the implementation of the variable dividend policy in early 2012.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended downward during the past month.
VGM Scores
At this time, CME has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, CME has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
CME belongs to the Zacks Securities and Exchanges industry. Another stock from the same industry, MarketAxess (MKTX - Free Report) , has gained 3.9% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
MarketAxess reported revenues of $186.06 million in the last reported quarter, representing a year-over-year change of -4.8%. EPS of $1.73 for the same period compares with $2.11 a year ago.
MarketAxess is expected to post earnings of $1.79 per share for the current quarter, representing a year-over-year change of +1.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.3%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for MarketAxess. Also, the stock has a VGM Score of F.