CME Group Inc. (CME - Free Report) reported second-quarter 2020 adjusted earnings per share of $1.63, which beat the Zacks Consensus Estimate by 0.6%. The bottom line decreased 7.4% year over year due to lower clearing and transaction fees. Average daily volume decreased in four out of the six products lines.
Performance in Detail
CME Group’s revenues of $1.2 billion decreased 7.1% year over year. The year-over-year decrease is primarily attributable to lower clearing and transaction fees (down 10.6% year over year), partially offset by higher market data and information services (up nearly 5% year over year), and other (up nearly 16% from the prior-year period). The top line missed the Zacks Consensus Estimate by 1.1%.
Total expenses decreased 5.1% year over year to $544.8 million during the reported quarter, attributable to lower depreciation and amortization as well as other expenses.
Operating income decreased 8.5% from the prior-year quarter to $637.5 million.
Average daily volume decreased 15.9% year over year to 17.6 million contracts in the quarter. Average rate per contract increased 5.5%.
Financial Update
As of Jun 30, 2020, CME Group had $1.5 billion of cash and marketable securities, down 8.6% from 2019 end. As of Jun 30, 2019, long-term debt of $3.4 billion decreased 8.1% from 2018 end.
As of Jun 30, 2020, the company had total assets worth $117.2 billion, up 55.8% from 2019 end.
Capital Deployment
CME Group paid out $304 million in dividends in the second quarter. The company has returned about $13.8 billion to shareholders in the form of dividends since the implementation of the variable dividend policy in early 2012.
Zacks Rank
CME Group currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Securities Exchange Industry Players
Second-quarter earnings of MarketAxess Holdings (MKTX - Free Report) and Nasdaq (NDAQ - Free Report) beat the Zacks Consensus Estimate.
Upcoming Release
Intercontinental Exchange (ICE - Free Report) is slated to report its second-quarter results on Jul 30 before market open. The Zacks Consensus Estimate for earnings is pegged at $1.04 per share.
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CME Group Inc. (CME - Free Report) reported second-quarter 2020 adjusted earnings per share of $1.63, which beat the Zacks Consensus Estimate by 0.6%. The bottom line decreased 7.4% year over year due to lower clearing and transaction fees. Average daily volume decreased in four out of the six products lines.
Performance in Detail
CME Group’s revenues of $1.2 billion decreased 7.1% year over year. The year-over-year decrease is primarily attributable to lower clearing and transaction fees (down 10.6% year over year), partially offset by higher market data and information services (up nearly 5% year over year), and other (up nearly 16% from the prior-year period). The top line missed the Zacks Consensus Estimate by 1.1%.
Total expenses decreased 5.1% year over year to $544.8 million during the reported quarter, attributable to lower depreciation and amortization as well as other expenses.
Operating income decreased 8.5% from the prior-year quarter to $637.5 million.
Average daily volume decreased 15.9% year over year to 17.6 million contracts in the quarter. Average rate per contract increased 5.5%.
Financial Update
As of Jun 30, 2020, CME Group had $1.5 billion of cash and marketable securities, down 8.6% from 2019 end. As of Jun 30, 2019, long-term debt of $3.4 billion decreased 8.1% from 2018 end.
As of Jun 30, 2020, the company had total assets worth $117.2 billion, up 55.8% from 2019 end.
Capital Deployment
CME Group paid out $304 million in dividends in the second quarter. The company has returned about $13.8 billion to shareholders in the form of dividends since the implementation of the variable dividend policy in early 2012.
Zacks Rank
CME Group currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Securities Exchange Industry Players
Second-quarter earnings of MarketAxess Holdings (MKTX - Free Report) and Nasdaq (NDAQ - Free Report) beat the Zacks Consensus Estimate.
Upcoming Release
Intercontinental Exchange (ICE - Free Report) is slated to report its second-quarter results on Jul 30 before market open. The Zacks Consensus Estimate for earnings is pegged at $1.04 per share.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained an impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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