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CME Group (CME) Beats on Q4 Earnings Estimates

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Have you been eager to see how CME Group Inc. (CME - Free Report) , one of the largest futures exchanges in the world, performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this Chicago, IL-based company’s earnings release this morning:

An Earnings Beat

CME Group reported adjusted earnings per share of $1.14, beating the Zacks Consensus Estimate of $1.10.

Results were primarily aided by increased revenues.

How Was the Estimate Revision Trend?

You should note that the earnings estimate for CME Group depicted optimism prior to the earnings release. The Zacks Consensus Estimate advanced 1.9% to $1.10 over the last 7days.

Also, CME Group has a decent earnings surprise history.

CME Group Inc. Price and EPS Surprise

CME Group Inc. Price and EPS Surprise | CME Group Inc. Quote

Overall, the company surpassed the Zacks Consensus Estimate by an average of 1.5% in the trailing four quarters.

Revenues Came in Higher Than Expected

CME Group’s revenues of $ 912.9 million increased 12.2% year over year. Also, the reported figure surpassed the Zacks Consensus Estimate of $906 million.

Key Takeaways

Average daily volume (ADV) surged 24% year over year to 16.3 million contracts in fourth-quarter 2016, with growth across five of the six product lines.

Total expenses increased 8.4% year over year at $372.7 million during the reported quarter.

Operating income improved about 15% to $540.2 million from the prior-year quarter.

As of Dec 31, 2016, long-term debt of $2.23 billion remained largely stable with the prior year period.

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #2(Buy) for CME Group . However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. Now it all depends on what sense the just-released report makes to the analysts.

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

Check back later for our full write up on this CME Group earnings report!

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