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.
CME Group (CME) Q1 Earnings Beat, Revenues Miss Estimates
Read MoreHide Full Article
CME Group Inc. (CME - Free Report) reported first-quarter 2017 adjusted earnings per share of $1.22 that beat the Zacks Consensus Estimate. The bottom line also increased from the year-ago earnings of $1.20.
Results were primarily driven by lower expenses. The quarter witnessed record average daily volume (ADV).
Including one-time items, net income was $1.18 per share in the reported quarter compared with $1.09 a year ago.
Performance in Detail
Revenues decreased 12.2% year over year to $929 million. Also, the reported figure missed the Zacks Consensus Estimate of $932 million. Decline in revenues may be attributable to lower clearing and transaction fees, and lesser market data and information services revenues.
Total expenses decreased 9% year over year to $328 million during the reported quarter.
Operating income improved about 4.7% from the prior-year quarter to $601.2 million.
Average daily volume (ADV) increased 1% year over year to a record 17 million contracts, with growth across three of the six product lines. Average rate per contract increased in three of the six product lines.
As of Mar 31, 2017, CME Group had $1.38 billion of cash and marketable securities compared with $1.95 billion at year-end 2016. Long-term debt of $2.23 billion as of Mar 31, 2017, remained largely flat with the prior-year period.
As of Mar 31, 2017, the company had total assets worth $75.5 billion, up from $69.4 billion at year-end 2016.
The company paid dividends worth $1.3 billion in the quarter.
Our Take
CME Group’s results reflect a solid performance. The company remains well positioned for growth given its strong market position with diverse derivative product lines. Efforts to expand and cross-sell core exchange-traded business through strategic alliances & acquisitions, new product initiatives and global reach further support growth. However, escalating costs and stiff competition remain key concerns.
Currently, CME Group carries a Zacks Rank # 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies in Securities Exchange Industry
MarketAxess Holdings Inc.'s (MKTX - Free Report) and Nasdaq, Inc. (NDAQ - Free Report) beat their respective Zacks Consensus Estimate in the first quarter.
Among others, Intercontinental Exchange, Inc. (ICE - Free Report) is scheduled to release results on May 3.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
CME Group (CME) Q1 Earnings Beat, Revenues Miss Estimates
CME Group Inc. (CME - Free Report) reported first-quarter 2017 adjusted earnings per share of $1.22 that beat the Zacks Consensus Estimate. The bottom line also increased from the year-ago earnings of $1.20.
Results were primarily driven by lower expenses. The quarter witnessed record average daily volume (ADV).
Including one-time items, net income was $1.18 per share in the reported quarter compared with $1.09 a year ago.
Performance in Detail
Revenues decreased 12.2% year over year to $929 million. Also, the reported figure missed the Zacks Consensus Estimate of $932 million. Decline in revenues may be attributable to lower clearing and transaction fees, and lesser market data and information services revenues.
Total expenses decreased 9% year over year to $328 million during the reported quarter.
Operating income improved about 4.7% from the prior-year quarter to $601.2 million.
Average daily volume (ADV) increased 1% year over year to a record 17 million contracts, with growth across three of the six product lines. Average rate per contract increased in three of the six product lines.
CME Group Inc. Price, Consensus and EPS Surprise
CME Group Inc. Price, Consensus and EPS Surprise | CME Group Inc. Quote
Financial Update
As of Mar 31, 2017, CME Group had $1.38 billion of cash and marketable securities compared with $1.95 billion at year-end 2016. Long-term debt of $2.23 billion as of Mar 31, 2017, remained largely flat with the prior-year period.
As of Mar 31, 2017, the company had total assets worth $75.5 billion, up from $69.4 billion at year-end 2016.
The company paid dividends worth $1.3 billion in the quarter.
Our Take
CME Group’s results reflect a solid performance. The company remains well positioned for growth given its strong market position with diverse derivative product lines. Efforts to expand and cross-sell core exchange-traded business through strategic alliances & acquisitions, new product initiatives and global reach further support growth. However, escalating costs and stiff competition remain key concerns.
Currently, CME Group carries a Zacks Rank # 3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies in Securities Exchange Industry
MarketAxess Holdings Inc.'s (MKTX - Free Report) and Nasdaq, Inc. (NDAQ - Free Report) beat their respective Zacks Consensus Estimate in the first quarter.
Among others, Intercontinental Exchange, Inc. (ICE - Free Report) is scheduled to release results on May 3.
The Best & Worst of Zacks
Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>