CME Group Inc. (CME Quick QuoteCME - Free Report) is slated to report third-quarter 2024 earnings on Oct. 23, before market open. CME's earnings beat estimates in each of the trailing four quarters.

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Factors to Consider

A diverse product portfolio, increased volatility and a strong market position are likely to have aided CME Group’s performance in the third quarter.

Increases in market data and information services, clearing, transaction fees and other revenues are likely to have aided CME’s top line in the to-be-reported quarter. The Zacks Consensus Estimate for revenues is pegged at $1.6 billion, indicating a rise of 15.6% from the year-ago reported figure.

Clearing and transaction fees are likely to have benefited from higher trading volumes across asset classes. We expect clearing and transaction fees to be $1.2 billion, indicating a 9.3% increase from the year-ago reported figure. 

CME reported a record quarterly average daily volume of 28.3 million contracts in the third quarter, up 27% year over year

Market data and information services revenues are likely to have gained from price increases for certain products, a rise in device counts, higher custody fees as well as improvements in co-location and other connectivity fees. We expect the figure to be $180 million, indicating a 7.4% increase from the year-ago reported figure. 

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 $468.1 million in the to-be-reported quarter, indicating an 11.6% increase from the year-ago reported figure. 

The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $2.60, indicating an increase of 15.6% 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. This is because the stock has 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. 

Earnings ESP: CME Group has an Earnings ESP of +1.93%. This is because the Most Accurate Estimate of $2.65 is pegged higher than the Zacks Consensus Estimate of $2.60. 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

Here are some other stocks from the finance sector that have the perfect mix of elements to beat on earnings in their upcoming quarterly releases.

Intercontinental Exchange (ICE Quick QuoteICE - Free Report) has an Earnings ESP of +0.82% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at $1.54 per share, indicating a year-over-year increase of 5.5%.

ICE’s earnings beat estimates in each of the last four quarters.

Nasdaq (NDAQ Quick QuoteNDAQ - Free Report) has an Earnings ESP of +0.51% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at 69 cents per share, indicating a year-over-year decrease of 2.8%.

NDAQ’s earnings beat estimates in three of the last four quarters while missing in one.

MarketAxess (MKTX Quick QuoteMKTX - Free Report) has an Earnings ESP of +1.62% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for third-quarter 2024 earnings is pegged at $1.82 per share, indicating a year-over-year increase of 24.7%.

MKTX’s earnings beat estimates in three of the last four quarters while missing in one.