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CME Group (CME) to Report Q4 Earnings: What's in the Cards?
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CME GroupInc. (CME - Free Report) is slated to report fourth-quarter 2023 earnings on Feb 14, before market open. CME's earnings beat estimates in each of the trailing four quarters.
Factors to Consider
CME Group's diverse product portfolio, increased volatility as well as strong market position are expected to have aided its performance in the fourth quarter.
An increase in market data and information services, clearing, transaction fees and other revenues is likely to have aided CME’s top line in the to-be-reported quarter. The Zacks Consensus Estimate for revenues is pegged at $1.43 billion, indicating a rise of 18% from the year-ago reported figure.
Clearing and transaction fees are likely to have benefited from increased volatility, which, in turn, is anticipated to have driven higher volumes. The Zacks Consensus Estimate for clearing and transaction fees is pegged at $1.2 billion, indicating a 19.3% increase from the year-ago reported figure. The consensus mark for the metric is in line with our estimate.
Market data and information services revenues are likely to have gained, owing to price increases for certain products, a rise in device counts, higher custody fees as well as improvements in co-location and other connectivity fees. The consensus estimate for market data and information services is pegged at $166 million, indicating an increase of 8.5% from the year-ago reported figure. We expect the figure to be $172.7 million.
Expenses are likely to have increased in the to-be-reported quarter due to higher compensation and benefits, technology and amortization of purchased intangibles. We anticipate expenses to be $479.7 million in the to-be-reported quarter.
The Zacks Consensus Estimate for four-quarter earnings per share is pegged at $2.27, indicating an increase of 18.2% from the year-ago quarter’s reported figure.
What the Zacks Model Says
Our proven model does not predict an earnings beat for CME Group this time around. This is because 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) that increases the odds of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: CME Group has an Earnings ESP of -0.33%. This is because the Most Accurate Estimate of $2.26 is pegged lower than the Zacks Consensus Estimate of $2.27. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
CUBE’s earnings beat estimates in two of the last four quarters, met in one and missed in the other.
Manulife Financial Corp (MFC - Free Report) has an Earnings ESP of +0.80% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at 63 cents per share, indicating a year-over-year decrease of 3.08%.
MFC’s earnings beat estimates in each of the trailing four quarters.
Arch Capital Group Ltd. (ACGL - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $1.94 per share, indicating a year-over-year decrease of 9.3%.
ACGL’s earnings beat estimates in each of the trailing four quarters.
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CME Group (CME) to Report Q4 Earnings: What's in the Cards?
CME Group Inc. (CME - Free Report) is slated to report fourth-quarter 2023 earnings on Feb 14, before market open. CME's earnings beat estimates in each of the trailing four quarters.
Factors to Consider
CME Group's diverse product portfolio, increased volatility as well as strong market position are expected to have aided its performance in the fourth quarter.
An increase in market data and information services, clearing, transaction fees and other revenues is likely to have aided CME’s top line in the to-be-reported quarter. The Zacks Consensus Estimate for revenues is pegged at $1.43 billion, indicating a rise of 18% from the year-ago reported figure.
Clearing and transaction fees are likely to have benefited from increased volatility, which, in turn, is anticipated to have driven higher volumes. The Zacks Consensus Estimate for clearing and transaction fees is pegged at $1.2 billion, indicating a 19.3% increase from the year-ago reported figure. The consensus mark for the metric is in line with our estimate.
Market data and information services revenues are likely to have gained, owing to price increases for certain products, a rise in device counts, higher custody fees as well as improvements in co-location and other connectivity fees. The consensus estimate for market data and information services is pegged at $166 million, indicating an increase of 8.5% from the year-ago reported figure. We expect the figure to be $172.7 million.
Expenses are likely to have increased in the to-be-reported quarter due to higher compensation and benefits, technology and amortization of purchased intangibles. We anticipate expenses to be $479.7 million in the to-be-reported quarter.
The Zacks Consensus Estimate for four-quarter earnings per share is pegged at $2.27, indicating an increase of 18.2% from the year-ago quarter’s reported figure.
What the Zacks Model Says
Our proven model does not predict an earnings beat for CME Group this time around. This is because 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) that increases the odds of an earnings beat. This is not the case here, as you will see below.
Earnings ESP: CME Group has an Earnings ESP of -0.33%. This is because the Most Accurate Estimate of $2.26 is pegged lower than the Zacks Consensus Estimate of $2.27. 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.
Stocks to Consider
Here are some stocks from the finance sector that have the perfect mix of elements to beat on earnings in their upcoming quarterly releases.
CubeSmart (CUBE - Free Report) has an Earnings ESP of +0.79% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at 68 cents per share, indicating a year-over-year increase of 1.49%. You can see the complete list of today’s Zacks #1 Rank stocks here.
CUBE’s earnings beat estimates in two of the last four quarters, met in one and missed in the other.
Manulife Financial Corp (MFC - Free Report) has an Earnings ESP of +0.80% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at 63 cents per share, indicating a year-over-year decrease of 3.08%.
MFC’s earnings beat estimates in each of the trailing four quarters.
Arch Capital Group Ltd. (ACGL - Free Report) has an Earnings ESP of +1.24% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $1.94 per share, indicating a year-over-year decrease of 9.3%.
ACGL’s earnings beat estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.