CME Group Inc. (CME - Free Report) reported second-quarter 2016 adjusted earnings per share of a record $1.14, which surpassed the Zacks Consensus Estimate of $1.11 by 2.7%. Also, the bottom line improved 15.2% year over year on record average daily volumes.
Including one-time items, net income of 95 cents per share for the quarter increased 21.8% year over year.
The quarter witnessed solid revenue growth, coupled with cost control induced margin expansion and earnings improvement. Management noted four of six product lines that generated more than 20% year-over-year increase in volume and transaction fee revenue.
Behind the Headlines
CME Group’s total revenue grew 10.5% year over year to a record $906.4 million. The improvement was mainly driven by 12.6% higher clearing and transaction fees and 3.7% increase in access and communication fees. Revenues, however, missed the Zacks Consensus Estimate of $911 million.
The company’s average daily volume was a record 15.1 million contracts, up 13% year over year. The company achieved quarterly record in agricultural commodities. In addition, total average rate per contract of 78.2 cents was higher than 77.7 cents in the year-ago quarter.
Total expenses increased 5.6% year over year to $343.1 million during the reported quarter. Operating income jumped 13.8% to $563.3 million.
Financial Update
As of Jun 30, 2016, CME Group had $1.2 billion in cash and marketable securities, down 29.7% from $1.8 billion at year-end 2015. Long-term debt was $2.2 billion, up 0.04% from the 2015-end level.
As of Jun 30, 2016, the company had total assets worth $67.6 billion, up 0.4% from $67.4 billion as of Dec 31, 2015.
Dividend Update
During the quarter, the company paid dividends worth $202 million.
Zacks Rank & Performance of Other Stocks
Currently, CME Group carries a Zacks Rank #3 (Hold). Among the other players from the finance sector that have reported their second-quarter earnings so far, the bottom line at RLI Corp. (RLI - Free Report) and Progressive Corp. (PGR - Free Report) missed their respective Zacks Consensus Estimates, while Nasdaq, Inc.’s (NDAQ - Free Report) earnings beat the same.
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CME Group Inc. (CME - Free Report) reported second-quarter 2016 adjusted earnings per share of a record $1.14, which surpassed the Zacks Consensus Estimate of $1.11 by 2.7%. Also, the bottom line improved 15.2% year over year on record average daily volumes.
Including one-time items, net income of 95 cents per share for the quarter increased 21.8% year over year.
The quarter witnessed solid revenue growth, coupled with cost control induced margin expansion and earnings improvement. Management noted four of six product lines that generated more than 20% year-over-year increase in volume and transaction fee revenue.
Behind the Headlines
CME Group’s total revenue grew 10.5% year over year to a record $906.4 million. The improvement was mainly driven by 12.6% higher clearing and transaction fees and 3.7% increase in access and communication fees. Revenues, however, missed the Zacks Consensus Estimate of $911 million.
The company’s average daily volume was a record 15.1 million contracts, up 13% year over year. The company achieved quarterly record in agricultural commodities. In addition, total average rate per contract of 78.2 cents was higher than 77.7 cents in the year-ago quarter.
Total expenses increased 5.6% year over year to $343.1 million during the reported quarter. Operating income jumped 13.8% to $563.3 million.
Financial Update
As of Jun 30, 2016, CME Group had $1.2 billion in cash and marketable securities, down 29.7% from $1.8 billion at year-end 2015. Long-term debt was $2.2 billion, up 0.04% from the 2015-end level.
As of Jun 30, 2016, the company had total assets worth $67.6 billion, up 0.4% from $67.4 billion as of Dec 31, 2015.
Dividend Update
During the quarter, the company paid dividends worth $202 million.
Zacks Rank & Performance of Other Stocks
Currently, CME Group carries a Zacks Rank #3 (Hold). Among the other players from the finance sector that have reported their second-quarter earnings so far, the bottom line at RLI Corp. (RLI - Free Report) and Progressive Corp. (PGR - Free Report) missed their respective Zacks Consensus Estimates, while Nasdaq, Inc.’s (NDAQ - Free Report) earnings beat the same.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.Click to get this free report >>
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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