A month has gone by since the last earnings report for CME Group (CME Quick QuoteCME - Free Report) . Shares have added about 1.9% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is CME due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

CME Group Q3 Earnings Beat on Higher Trading Volume

CME Group reported third-quarter 2022 adjusted earnings per share of $1.98, which beat the Zacks Consensus Estimate of $1.93. The bottom line increased 23.8% year over year.

Quarterly results benefited from a 26% increase in trading volume, generating double-digit growth in total revenues. Average daily volume increased in five of its six asset classes.

Performance in Detail

CME Group’s revenues of $1.2 billion increased 10.6% year over year. The year-over-year increase was primarily due to higher clearing and transaction fees (up 13.6% year over year) and market data and information services (up 6.3% year over year). The top line beat the Zacks Consensus Estimate by 0.1%.

Total expenses decreased 1.5% year over year to $489 million quarter, attributable to lower compensation and benefits, technology, professional fees and outside services, depreciation and amortization and amortization of purchased intangibles.

Operating income increased 20.4% from the prior-year quarter to $738.8 million.

ADV was 22.4 million contracts, including non-U.S. ADV of 6.1 million contracts, led by 41% growth in Asia, 31% in Latin America and 14% in EMEA.

Financial Update

As of Sep 30, 2022, CME Group had $2.2 billion of cash and marketable securities, down 24.7% from 2021 end. As of Sep 30, 2022, long-term debt of $3.4 billion increased 26.9% from 2021 end.

As of Sep 30, 2022, CME had total equity worth $28.3 billion, up 3.1% from 2021 end.

Capital Deployment

CME Group paid out $363 billion in dividends, taking the tally to $18.8 billion since the implementation of the variable dividend policy in early 2012.

How Have Estimates Been Moving Since Then?

It turns out, estimates review flatlined during the past month.

VGM Scores

At this time, CME has a subpar Growth Score of D, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

CME has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

CME belongs to the Zacks Securities and Exchanges industry. Another stock from the same industry, Nasdaq (NDAQ Quick QuoteNDAQ - Free Report) , has gained 10.7% over the past month. More than a month has passed since the company reported results for the quarter ended September 2022.

Nasdaq reported revenues of $890 million in the last reported quarter, representing a year-over-year change of +6.2%. EPS of $0.68 for the same period compares with $0.59 a year ago.

For the current quarter, Nasdaq is expected to post earnings of $0.66 per share, indicating a change of +3.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.8% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Nasdaq. Also, the stock has a VGM Score of D.