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CME Group (CME) Q2 Earnings Beat, Revenues Decrease Y/Y

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CME Group Inc. (CME - Free Report) reported second-quarter 2021 adjusted earnings per share of $1.64, which beat the Zacks Consensus Estimate of $1.59. The bottom line increased 0.6% year over year due to higher market data and information services and lower expenses.

Average daily volume increased in four of the six products lines.

CME Group Inc. Price, Consensus and EPS Surprise

Performance in Detail

CME Group’s revenues of $1.2 billion decreased 0.3% year over year. The year-over-year decrease was primarily due to lower clearing and transaction fees (down 1.1% year over year) and other (down 3.1%). Increase in market data and information services (up 7.8% year over year) limited the downside. The top line beat the Zacks Consensus Estimate by 0.8%.

Total expenses decreased 7.4% year over year to $504.5 million during the reported quarter, attributable to lower compensation and benefits, professional fees and outside services and amortization of purchased intangibles.

Operating income increased 5.8% from the prior-year quarter to $674.7 million.

Average daily volume improved 5% to 18.4 million driven by double-digit, year-over-year increases in Interest Rates, Agricultural and Options markets. Average rate per contract decreased 4.9%.

Financial Update

As of Jun 30, 2021, CME Group had $1.2 billion of cash and marketable securities, down 31.3% from 2020 end. As of Jun 30, 2021, long-term debt of $3.4 billion remained flat with 2020 end.

As of Jun 30, 2021, the company had total equity worth $26.8 billion, up 1.7% from 2020 end.

Capital Deployment

The company paid out dividends of $322 million in the second quarter. CME Group has returned more than $15.9 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 #3 (Hold).  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 Nasdaq (NDAQ - Free Report) and MarketAxess Holdings (MKTX - Free Report) beat the respective Zacks Consensus Estimate.

Upcoming Release

Cboe Global Markets (CBOE - Free Report) is scheduled to release second-quarter earnings on Jul 30. The Zacks Consensus Estimate for the second quarter is pegged at $1.35.