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CME Group (CME) to Report Q2 Earnings: What's in the Offing?

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CME Group (CME - Free Report) is slated to report second-quarter 2022 earnings on Jul 27 , before market open. CME delivered an earnings surprise in each of the last four quarters, the average being 3.27%.

Factors to Consider

The top line in the to-be-reported quarter is 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 $1.2 billion, indicating an increase of 5.2% from the year-ago reported figure.

The Zacks Consensus Estimate for clearing and transaction fees is pegged at $1.3 billion, indicating an increase of 10.7% from the year-ago reported figure. An increase in volumes traded, given a sturdy market position with diverse derivative product lines and global reach, is likely to have driven clearing and transaction fees.

Recently, CME Group reported a decent average daily volume (ADV) for the second quarter. ADV of 23.1 million contracts per day reflects the third-highest quarterly volume. It improved 25% year over year due to increased volumes in three of the six product lines.

The interest rate volume of 10.6 million contracts per day increased 24%. Foreign exchange volumes increased 24% to 0.9 million contracts per day. Metals volume of 0.5 million contracts per day decreased 15%. Energy volume of 1.9 million contracts decreased 2% year over year while Equity index volume of nearly 7.8 million contracts per day increased 57%. Agricultural volume of 1.3 million contracts per day increased 24%.

ADV outside the United States increased 21% to 6.3 million contracts in Q2, including 40% growth in Latin America, 36% in Asia and 15% in EMEA.

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 $151 million, up 4.1% from the year-ago reported figure.

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 second-quarter earnings per share is pegged at $1.92, indicating an increase of 17.1% from the year-ago quarter reported figure.

What the Zacks Model Says

Our proven model does not conclusively predict an earnings beat for CME Group this time around. A stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for an earnings beat. That is not the case 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 are pegged at $1.92. 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 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.

Stocks to Consider

Some stocks worth considering from the finance sector with a perfect mix of elements to surpass estimates in their upcoming quarterly releases are as follows:

Coinbase Global (COIN - Free Report) has an Earnings ESP of +1.71% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2022 loss is pegged at $3.04 per share, indicating a decrease of 147.4% from the year-ago reported figure.

COIN’s earnings beat estimates in two of the last four reported quarters, while missing in the other two.

Cincinnati Financial Corporation (CINF - Free Report) has an Earnings ESP of +2.86% and a Zacks Rank #3. The Zacks Consensus Estimate for second-quarter 2022 earnings is pegged at $1.05, implying a decline of 41.3% from the figure reported in the year-ago quarter.

CINF beat earnings estimates in each of the four trailing quarters.

Arthur J. Gallagher (AJG - Free Report) has an Earnings ESP of +0.37% and a Zacks Rank of 2. The Zacks Consensus Estimate for second-quarter 2022 earnings is pegged at $1.68, indicating an increase of 43.5% from the year-ago reported figure.

AJG’s earnings beat estimates in each of the four trailing quarters.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.