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CME Group (CME) Q1 Earnings In Line, Revenues Hit Record

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CME Group Inc. (CME - Free Report) reported first-quarter 2016 adjusted earnings per share of a record $1.15, in line with the Zacks Consensus Estimate. The bottom line however increased 17% year over year on record average daily volumes.

CME Group Inc. (CME - Free Report) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompany

Including one-time items, net income of $1.09 per share for the quarter increased 11.2% year over year.

Behind the Headlines

CME Group’s total revenue increased 11% year over year to a record $934 million and surpassed the Zacks Consensus Estimate of $925 million. The improvement was fueled by 12.4% higher clearing and transaction fees and a 4.5% increase in market data and information services revenues.

The company’s average daily volume was a record 16.9 million contracts, up 13% year over year. The company achieved quarterly records in energy, total options and electronic options. However, total average rate per contract of 75.6 cents was lower than 78.9 cents in the year-ago quarter.

Total expenses increased 7.4% year over year to $360.3 million during the reported quarter. Operating income improved 13% to $573.9 million.

Financial Update

As of Mar 31, 2016, CME Group had $1.2 billion in cash and marketable securities, lower than $1.7 billion at year-end 2015. Meanwhile, long-term debt was $2.2 billion, flat with the 2015-end level.

As of Mar 31, 2016, the company had total assets worth $68.8 billion, up from $67.4 billion as of Dec 31, 2015.

Dividend Update

During the quarter, the company paid $1.2 billion in dividends.

Zacks Rank & Other Stocks in Securities Exchange

Currently, CME Group carries a Zacks Rank #3 (Hold). Among the other stocks in the securities exchange space, Nasdaq, Inc. (NDAQ - Free Report) beat estimates but MarketAxess Holdings Inc. (MKTX - Free Report) missed the same. CBOE Holdings, Inc. (CBOE - Free Report) is scheduled to release its first-quarter results on Apr 29.

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