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Is a Beat in the Cards for CME Group (CME) in Q1 Earnings?
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CME Group (CME - Free Report) is slated to report first-quarter 2021 earnings on Apr 27, before market open. CME delivered an earnings surprise in each of the last four quarters, the average being 2.47%.
Factors to Consider
CME Group’s first-quarter revenues are likely to have been aided by improved clearing, transaction fees and other revenues, and market data and information services. The Zacks Consensus Estimate for the top line is pegged at $1.3 billion, indicating an increase of 5% from the year-ago reported figure.
The Zacks Consensus Estimate for clearing and transaction fees is pegged at $1.1 billion, indicating an increase of 10.4% from the year-ago reported figure.
Market data and information services revenues are likely to have increased owing to price increases for certain device fees. The consensus estimate for market data and information services is pegged at $144 million, unchanged from the year-ago reported figure.
Recently, CME Group reported a decent average daily volume (ADV) for the first quarter. ADV of 25.9 million contracts per day improved 19% year over year in the first quarter due to increased volumes in four of the six product lines.
Interest rate volume of 12.5 million contracts per day increased 21%, while Foreign exchange volumes increased 6% to about 0.9 million contracts per day. Metals volume of 0.5 million contracts per day decreased 12%. Energy volume of about 2.5 million contracts increased 6% year over year while Equity index volume of nearly 7.9 million contracts per day increased 30%. Agricultural volume of 1.5 million contracts per day was flat.
Expenses are likely to have decreased in the to-be-reported quarter due to lower compensation and benefits, technology, reduced professional fees and outside services, amortization of purchased intangibles, lower depreciation and amortization.
The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $2.00, indicating an increase of 11.7% from the year-ago quarter reported figure.
What the Zacks Model Says
Our proven model predicts an earnings beat for CME Group this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: CME Group has an Earnings ESP of +0.44%. This is because the Most Accurate Estimate of $2.01 is pegged higher than the Zacks Consensus Estimate of $2.00. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Some other stocks worth considering from the finance sector with a perfect mix of elements to surpass estimates in their upcoming quarterly releases are as follows:
NMI Holdings Inc. (NMIH - Free Report) has an Earnings ESP of +4.00% and a Zacks Rank of 3. The Zacks Consensus Estimate for the first-quarter 2022 earnings is pegged at 75 cents, indicating an increase of 20.9% from the year-ago reported figure.
NMIH’s earnings beat estimates in each of the four trailing quarters of 2021.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +5.15% and a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at $3.08 per share, indicating a decrease of 49.6% from the year-ago reported figure.
ALL beat earnings estimates in three of the four reported quarters of 2021 and missed in one.
ProAssurance Corporation (PRA - Free Report) has an Earnings ESP of +27.54% and a Zacks Rank of 2. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at 17 cents, indicating an increase of 325% from the year-ago reported figure.
PRA’s earnings beat estimates in each of the four trailing quarters of 2021.
Image: Bigstock
Is a Beat in the Cards for CME Group (CME) in Q1 Earnings?
CME Group (CME - Free Report) is slated to report first-quarter 2021 earnings on Apr 27, before market open. CME delivered an earnings surprise in each of the last four quarters, the average being 2.47%.
Factors to Consider
CME Group’s first-quarter revenues are likely to have been aided by improved clearing, transaction fees and other revenues, and market data and information services. The Zacks Consensus Estimate for the top line is pegged at $1.3 billion, indicating an increase of 5% from the year-ago reported figure.
The Zacks Consensus Estimate for clearing and transaction fees is pegged at $1.1 billion, indicating an increase of 10.4% from the year-ago reported figure.
Market data and information services revenues are likely to have increased owing to price increases for certain device fees. The consensus estimate for market data and information services is pegged at $144 million, unchanged from the year-ago reported figure.
Recently, CME Group reported a decent average daily volume (ADV) for the first quarter. ADV of 25.9 million contracts per day improved 19% year over year in the first quarter due to increased volumes in four of the six product lines.
Interest rate volume of 12.5 million contracts per day increased 21%, while Foreign exchange volumes increased 6% to about 0.9 million contracts per day. Metals volume of 0.5 million contracts per day decreased 12%. Energy volume of about 2.5 million contracts increased 6% year over year while Equity index volume of nearly 7.9 million contracts per day increased 30%. Agricultural volume of 1.5 million contracts per day was flat.
Expenses are likely to have decreased in the to-be-reported quarter due to lower compensation and benefits, technology, reduced professional fees and outside services, amortization of purchased intangibles, lower depreciation and amortization.
The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $2.00, indicating an increase of 11.7% from the year-ago quarter reported figure.
What the Zacks Model Says
Our proven model predicts an earnings beat for CME Group this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: CME Group has an Earnings ESP of +0.44%. This is because the Most Accurate Estimate of $2.01 is pegged higher than the Zacks Consensus Estimate of $2.00. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
CME Group Inc. Price and EPS Surprise
CME Group Inc. price-eps-surprise | CME Group Inc. Quote
Zacks Rank: CME Group currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Some other stocks worth considering from the finance sector with a perfect mix of elements to surpass estimates in their upcoming quarterly releases are as follows:
NMI Holdings Inc. (NMIH - Free Report) has an Earnings ESP of +4.00% and a Zacks Rank of 3. The Zacks Consensus Estimate for the first-quarter 2022 earnings is pegged at 75 cents, indicating an increase of 20.9% from the year-ago reported figure.
NMIH’s earnings beat estimates in each of the four trailing quarters of 2021.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +5.15% and a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at $3.08 per share, indicating a decrease of 49.6% from the year-ago reported figure.
ALL beat earnings estimates in three of the four reported quarters of 2021 and missed in one.
ProAssurance Corporation (PRA - Free Report) has an Earnings ESP of +27.54% and a Zacks Rank of 2. The Zacks Consensus Estimate for first-quarter 2022 earnings is pegged at 17 cents, indicating an increase of 325% from the year-ago reported figure.
PRA’s earnings beat estimates in each of the four trailing quarters of 2021.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.