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) Q2 Earnings Top, Revenues Lag, Expenses Fall
Read MoreHide Full Article
CME Group Inc. (CME - Free Report) reported second-quarter 2017 adjusted earnings per share of $1.23, beating the Zacks Consensus Estimate of $1.20. The bottom line also increased 7.9% year over year.
Results were primarily driven by lower expenses. The quarter witnessed a record average daily volume (ADV).
Including one-time items, the net income was $1.22 per share, up 32% year over year.
Performance in Detail
CME Group’s revenues of $925 million increased 2.1% year over year. However, the reported figure missed the Zacks Consensus Estimate of $930 million. Improvement in revenues may be attributable to higher clearing and transaction fees, plus access and communication fees.
Total expenses decreased 7% year over year to $319 million during the reported quarter.
Operating income improved about 7.5% to $605.6 million from the prior-year quarter.
Average daily volume (ADV) rose 9% year over year to a record 16.5 million contracts, with growth registered across four of the six product lines. Average rate per contract increased in three of the six product lines.
Financial Update
As of Jun 30, 2017, CME Group had $1.4 billion of cash and marketable securities, down 26% from year-end 2016. As of Jun 30, 2017, the long-term debt of $2.2 billion inched up 0.04% from the last year-end figure.
As of Jun 30, 2017, the company had total assets worth $78.5 billion, up from $69.4 billion at year-end 2016.
The company paid dividends worth $223 million in the reported 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, support growth. However, escalating costs and stiff competition remain key challenges.
Performance of Other Companies in Securities Exchange Industry
MarketAxess Holdings Inc. (MKTX - Free Report) and Nasdaq, Inc. (NDAQ - Free Report) beat their respective Zacks Consensus Estimate in the second quarter.
Intercontinental Exchange Inc. (ICE - Free Report) will report second-quarter results on Aug 3 before the market opens.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
CME Group (CME) Q2 Earnings Top, Revenues Lag, Expenses Fall
CME Group Inc. (CME - Free Report) reported second-quarter 2017 adjusted earnings per share of $1.23, beating the Zacks Consensus Estimate of $1.20. The bottom line also increased 7.9% year over year.
Results were primarily driven by lower expenses. The quarter witnessed a record average daily volume (ADV).
CME Group Inc. Price, Consensus and EPS Surprise
CME Group Inc. Price, Consensus and EPS Surprise | CME Group Inc. Quote
Including one-time items, the net income was $1.22 per share, up 32% year over year.
Performance in Detail
CME Group’s revenues of $925 million increased 2.1% year over year. However, the reported figure missed the Zacks Consensus Estimate of $930 million. Improvement in revenues may be attributable to higher clearing and transaction fees, plus access and communication fees.
Total expenses decreased 7% year over year to $319 million during the reported quarter.
Operating income improved about 7.5% to $605.6 million from the prior-year quarter.
Average daily volume (ADV) rose 9% year over year to a record 16.5 million contracts, with growth registered across four of the six product lines. Average rate per contract increased in three of the six product lines.
Financial Update
As of Jun 30, 2017, CME Group had $1.4 billion of cash and marketable securities, down 26% from year-end 2016. As of Jun 30, 2017, the long-term debt of $2.2 billion inched up 0.04% from the last year-end figure.
As of Jun 30, 2017, the company had total assets worth $78.5 billion, up from $69.4 billion at year-end 2016.
The company paid dividends worth $223 million in the reported 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, support growth. However, escalating costs and stiff competition remain key challenges.
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. (MKTX - Free Report) and Nasdaq, Inc. (NDAQ - Free Report) beat their respective Zacks Consensus Estimate in the second quarter.
Intercontinental Exchange Inc. (ICE - Free Report) will report second-quarter results on Aug 3 before the market opens.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>