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Can CME Group (CME) Spring a Surprise this Earnings Season?
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CME Group, Inc. (CME - Free Report) is set to report first-quarter 2017 results on Apr 27, before the market opens. Last quarter, the company posted a positive earnings surprise of 3.64%. Let’s see how things are shaping up for this announcement.
Factors to be Considered this Past Quarter
CME Group’s top line is likely to have benefited from consistent efforts to expand and cross-sell core exchange-traded business through strategic alliances, new product initiatives and global reach.
The company witnessed improved average daily volumes in some of its products. Though January and February had lower ADV, the metric showed improvement in March. In fact, Interest Rates ADV was a record 9.2 million contracts, up 11%. Also, Metals ADV was at record 512,000 contracts, up 13%.
However escalating expenses, owing to several ongoing investments in strategic initiatives is likely to have weighed on margin expansion.
Notably, CME Group has a decent earnings surprise history with an average beat of 1.83% for the trailing four quarters.
Our proven model does not conclusively show that CME Group is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: CME Group has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.20. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CME Group carries a Zacks Rank #3, which increases the predictive power of ESP. However, an Earnings ESP of 0.00% makes surprise prediction difficult.
We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies from the finance sector that you may want to consider as these have the right combination of elements to post an earnings beat this quarter.
Intercontinental Exchange, Inc. (ICE - Free Report) has an Earnings ESP of +1.37% and a Zacks Rank #3. The company is set to report first-quarter earnings on May 3.
ARES MANAGEMENT LP (ARES - Free Report) has an Earnings ESP of +2.56% and a Zacks Rank #3. The partnership is set to report first-quarter earnings on May 8.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
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Can CME Group (CME) Spring a Surprise this Earnings Season?
CME Group, Inc. (CME - Free Report) is set to report first-quarter 2017 results on Apr 27, before the market opens. Last quarter, the company posted a positive earnings surprise of 3.64%. Let’s see how things are shaping up for this announcement.
Factors to be Considered this Past Quarter
CME Group’s top line is likely to have benefited from consistent efforts to expand and cross-sell core exchange-traded business through strategic alliances, new product initiatives and global reach.
The company witnessed improved average daily volumes in some of its products. Though January and February had lower ADV, the metric showed improvement in March. In fact, Interest Rates ADV was a record 9.2 million contracts, up 11%. Also, Metals ADV was at record 512,000 contracts, up 13%.
However escalating expenses, owing to several ongoing investments in strategic initiatives is likely to have weighed on margin expansion.
Notably, CME Group has a decent earnings surprise history with an average beat of 1.83% for the trailing four quarters.
CME Group Inc. Price and EPS Surprise
CME Group Inc. Price and EPS Surprise | CME Group Inc. Quote
Earnings Whisper
Our proven model does not conclusively show that CME Group is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: CME Group has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate are pegged at $1.20. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CME Group carries a Zacks Rank #3, which increases the predictive power of ESP. However, an Earnings ESP of 0.00% makes surprise prediction difficult.
We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies from the finance sector that you may want to consider as these have the right combination of elements to post an earnings beat this quarter.
Apollo Global Management, LLC (APO - Free Report) has an Earnings ESP of +3.23% and a Zacks Rank #3. The company is set to report first-quarter earnings on Apr 28. You can see the complete list of today’s Zacks #1 Rank stocks here.
Intercontinental Exchange, Inc. (ICE - Free Report) has an Earnings ESP of +1.37% and a Zacks Rank #3. The company is set to report first-quarter earnings on May 3.
ARES MANAGEMENT LP (ARES - Free Report) has an Earnings ESP of +2.56% and a Zacks Rank #3. The partnership is set to report first-quarter earnings on May 8.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>