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Will CME Group (CME) Pull a Surprise this Earnings Season?
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CME Group Inc. (CME - Free Report) is set to report third-quarter 2016 results on Oct 27, before the market opens. Last quarter, the company posted a positive earnings surprise of 2.70%. Let’s see how things are shaping up for this announcement.
Factors to be Considered this Quarter
CME Group is likely to witness top-line growth in the to-be-reported quarter owing to the expansion of futures products in emerging markets, non-transaction related opportunities and Over the Counter (OTC) offerings.
In addition, the securities exchange is likely to report average daily volume growth in the third quarter, mainly due to positive operating leverage. Also, the company is expected to experience a rise in average daily volume growth in its metals and precious metals businesses.
Further, CME Group is likely to record a rise in the average daily volume of electronic options.
However, the company is expected to record an increase in expenses due to heavier spending on customer-related activity and acceleration of product development.
With respect to the surprise trend, the company delivered positive surprises in three of the last four quarters, with an average beat of 2.25%.
Our proven model does not conclusively show that CME Group is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: CME Group has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.04. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: CME Group carries a Zacks Rank #3.
We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies from the finance sector that you may want to consider as these have the right combination of elements to post an earnings beat this quarter:
RenaissanceRe Holdings Ltd. (RNR - Free Report) has an Earnings ESP of +3.59% and a Zacks Rank #3. The company is set to report third-quarter earnings on Nov 1.
MetLife, Inc. (MET - Free Report) has an Earnings ESP of +4.13% and a Zacks Rank #3. The company is set to report third-quarter earnings on Nov 2.
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Will CME Group (CME) Pull a Surprise this Earnings Season?
CME Group Inc. (CME - Free Report) is set to report third-quarter 2016 results on Oct 27, before the market opens. Last quarter, the company posted a positive earnings surprise of 2.70%. Let’s see how things are shaping up for this announcement.
Factors to be Considered this Quarter
CME Group is likely to witness top-line growth in the to-be-reported quarter owing to the expansion of futures products in emerging markets, non-transaction related opportunities and Over the Counter (OTC) offerings.
In addition, the securities exchange is likely to report average daily volume growth in the third quarter, mainly due to positive operating leverage. Also, the company is expected to experience a rise in average daily volume growth in its metals and precious metals businesses.
Further, CME Group is likely to record a rise in the average daily volume of electronic options.
However, the company is expected to record an increase in expenses due to heavier spending on customer-related activity and acceleration of product development.
With respect to the surprise trend, the company delivered positive surprises in three of the last four quarters, with an average beat of 2.25%.
CME GROUP INC Price and EPS Surprise
CME GROUP INC Price and EPS Surprise | CME GROUP INC Quote
Earnings Whispers
Our proven model does not conclusively show that CME Group is likely to beat on earnings this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Zacks ESP: CME Group has an Earnings ESP of 0.00%. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at $1.04. Please check our Earnings ESP Filter that enables you to find stocks that are expected to come out with earnings surprises.
Zacks Rank: CME Group carries a Zacks Rank #3.
We caution against Sell-rated stocks (Zacks Rank #4 or 5) going into the earnings announcement, especially when the company is seeing negative estimate revisions.
Stocks to Consider
Here are some companies from the finance sector that you may want to consider as these have the right combination of elements to post an earnings beat this quarter:
CNA Financial Corporation (CNA - Free Report) , which is slated to report third-quarter earnings on Oct 31, has an Earnings ESP of +2.38% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
RenaissanceRe Holdings Ltd. (RNR - Free Report) has an Earnings ESP of +3.59% and a Zacks Rank #3. The company is set to report third-quarter earnings on Nov 1.
MetLife, Inc. (MET - Free Report) has an Earnings ESP of +4.13% and a Zacks Rank #3. The company is set to report third-quarter earnings on Nov 2.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>