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CME Group (CME) to Report Q1 Earnings: What's in the Cards?
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CME Group Inc. (CME - Free Report) is set to report first-quarter 2019 earnings on May 1, before market open. The company boasts a stellar record of delivering positive earnings surprise in the last 11 quarters.
Let’s see what is in store for the company in the soon-to-be reported quarter.
Expansion of futures products in emerging markets, options business, non-transaction related opportunities and OTC offerings are likely to aid top-line growth in the to-be reported quarter. The Zacks Consensus Estimate for revenues stands at $1.2 billion, up 7.5% year over year.
CME group boasts a premier position with about 90% market share of the global futures trading and clearing services. The Zacks Consensus Estimate for clearing and transaction fees is pegged at $993 million, up nearly 2% year over year.
In first-quarter 2019, average daily volumes (ADV) declined 16% year over year to 18.6 million contracts per day on lower volumes across product lines. Energy volume of 2.3 million contracts decreased 15%. Interest rate volume of 10.3 million contracts per day declined 14% while Equity index volume of 3.2 million contracts per day decreased 23%. Also, Metals volume of 0.6 million contracts per day declined 21% whereas Foreign exchange volumes contracted 20% to 0.9 million contracts per day. Agricultural volume of 1.4 million contracts per day witnessed a decline of 13% year over year.
Despite expense discipline in place, the company may witness higher expenses in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for earnings per share is pegged at $1.60, indicating a decline of 14% from the year-ago quarter reported figure.
Our proven model does not conclusively show that CME Group is likely to beat on earnings this reporting season. This is because a stock needs to have both a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as you will see below.
Earnings ESP: CME Group has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate stand at $1.60. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: CME Group carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against the Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Some stocks from the finance sector with the perfect mix of elements to outshine estimates this time around are as follows:
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +0.70% and a Zacks Rank of 3. The company is slated to announce first-quarter earnings on May 1.
Ares Management L.P. (ARES - Free Report) has an Earnings ESP of +3.20% and is a Zacks #3 Ranked player. The company is scheduled to release first-quarter earnings on May 2.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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CME Group (CME) to Report Q1 Earnings: What's in the Cards?
CME Group Inc. (CME - Free Report) is set to report first-quarter 2019 earnings on May 1, before market open. The company boasts a stellar record of delivering positive earnings surprise in the last 11 quarters.
Let’s see what is in store for the company in the soon-to-be reported quarter.
Expansion of futures products in emerging markets, options business, non-transaction related opportunities and OTC offerings are likely to aid top-line growth in the to-be reported quarter. The Zacks Consensus Estimate for revenues stands at $1.2 billion, up 7.5% year over year.
CME group boasts a premier position with about 90% market share of the global futures trading and clearing services. The Zacks Consensus Estimate for clearing and transaction fees is pegged at $993 million, up nearly 2% year over year.
In first-quarter 2019, average daily volumes (ADV) declined 16% year over year to 18.6 million contracts per day on lower volumes across product lines. Energy volume of 2.3 million contracts decreased 15%. Interest rate volume of 10.3 million contracts per day declined 14% while Equity index volume of 3.2 million contracts per day decreased 23%. Also, Metals volume of 0.6 million contracts per day declined 21% whereas Foreign exchange volumes contracted 20% to 0.9 million contracts per day. Agricultural volume of 1.4 million contracts per day witnessed a decline of 13% year over year.
Despite expense discipline in place, the company may witness higher expenses in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for earnings per share is pegged at $1.60, indicating a decline of 14% from the year-ago quarter reported figure.
CME Group Inc. Price and EPS Surprise
CME Group Inc. Price and EPS Surprise | CME Group Inc. Quote
What Our Quantitative Model Predicts
Our proven model does not conclusively show that CME Group is likely to beat on earnings this reporting season. This is because a stock needs to have both a positive Earnings ESP and a favorable Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that is not the case here as you will see below.
Earnings ESP: CME Group has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate stand at $1.60. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: CME Group carries a Zacks Rank #3, which increases the predictive power of ESP. However, the company’s ESP of 0.00% makes surprise prediction difficult.
We caution against the Sell-rated stocks (#4 or 5) going into an earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Some stocks from the finance sector with the perfect mix of elements to outshine estimates this time around are as follows:
AerCap Holdings N.V. (AER - Free Report) is set to report first-quarter earnings on May 1. The company has an Earnings ESP of +1.88% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +0.70% and a Zacks Rank of 3. The company is slated to announce first-quarter earnings on May 1.
Ares Management L.P. (ARES - Free Report) has an Earnings ESP of +3.20% and is a Zacks #3 Ranked player. The company is scheduled to release first-quarter earnings on May 2.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>