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Is a Beat in the Cards for CME Group This Earnings Season?
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Key Takeaways
International ADV hit a record 9.2 million contracts, up 18% from the prior-year period.
Total Q2 revenue growth is expected across clearing, market data, and other services.
CME's Q2 performance is expected to benefit from a diverse product portfolio and strong trading activity.
CME Group Inc. (CME - Free Report) is expected to register an improvement in its top and bottom lines when it reports second-quarter 2025 results on July 23, before the opening bell.
The Zacks Consensus Estimate for CME’s second-quarter revenues is pegged at $1.68 billion, indicating 9.4% growth from the year-ago reported figure.
The consensus estimate for earnings is pegged at $2.90 per share. The Zacks Consensus Estimate for CME’s second-quarter earnings has moved down 5.71.3% in the past 30 days. The estimate suggests a year-over-year increase of 13.2%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
What the Zacks Model Says
Our proven model predicts an earnings beat for CME Group this time. 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), which increases the chances of an earnings beat.
Earnings ESP: CME Group has an Earnings ESP of +0.93%. This is because the Most Accurate Estimate of $2.93 is pegged higher than the Zacks Consensus Estimate of $2.90. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: CME Group currently carries a Zacks Rank of 3.
Factors Likely to Shape Q2 Results
CME Group’s second-quarter performance is likely to have benefited from a diverse product portfolio, increased volatility and a strong market position.
Revenues are likely to have benefited from an increase in market data and information services, clearing, transaction fees and other revenues.
Higher trading volumes across asset classes are likely to have driven clearing and transaction fees. We expect clearing and transaction fees to be $1.3 billion, indicating a 7.7% increase from the year-ago reported figure. The Zacks Consensus Estimate for second-quarter clearing and transaction fees is pegged at $1.4 billion, indicating a rise of 9.5% from the year-ago reported figure.
CME reported a record quarterly average daily volume of 30.2 million contracts in the second quarter, up 16% year over year. This was driven by record quarterly volume in Interest Rate, Agricultural and Metals products. International ADV reached a record 9.2 million contracts, up 18% year on 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 $196.7 million, indicating a 12.4% increase from the year-ago reported figure. The Zacks Consensus Estimate for second-quarter market data and information services revenues is pegged at $195 million, indicating an increase of 11.4% from the year-ago reported figure.
Expenses are likely to have increased in the to-be-reported quarter due to higher compensation and benefits and technology expenses. We anticipate expenses to be $513.9 million in the to-be-reported quarter, indicating an 8.4% increase from the year-ago reported figure.
Other Stocks to Consider
Here are three finance stocks you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat.
NDAQ’s beat estimates in each of the last four reported quarters.
Intercontinental Exchange Inc. (ICE - Free Report) has an Earnings ESP of +0.57% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $1.76, indicating a year-over-year increase of 15.7%.
ICE’s earnings beat estimates in three of the last four reported quarters while meeting the same in one.
MarketAxess Holdings Inc. (MKTX - Free Report) has an Earnings ESP of +0.95% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $1.94, implying an increase of 12.7% from the year-ago reported figure.
MKTX’s beat estimates in each of the last four reported quarters.
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Is a Beat in the Cards for CME Group This Earnings Season?
Key Takeaways
CME Group Inc. (CME - Free Report) is expected to register an improvement in its top and bottom lines when it reports second-quarter 2025 results on July 23, before the opening bell.
The Zacks Consensus Estimate for CME’s second-quarter revenues is pegged at $1.68 billion, indicating 9.4% growth from the year-ago reported figure.
The consensus estimate for earnings is pegged at $2.90 per share. The Zacks Consensus Estimate for CME’s second-quarter earnings has moved down 5.71.3% in the past 30 days. The estimate suggests a year-over-year increase of 13.2%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
What the Zacks Model Says
Our proven model predicts an earnings beat for CME Group this time. 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), which increases the chances of an earnings beat.
Earnings ESP: CME Group has an Earnings ESP of +0.93%. This is because the Most Accurate Estimate of $2.93 is pegged higher than the Zacks Consensus Estimate of $2.90. 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.
Factors Likely to Shape Q2 Results
CME Group’s second-quarter performance is likely to have benefited from a diverse product portfolio, increased volatility and a strong market position.
Revenues are likely to have benefited from an increase in market data and information services, clearing, transaction fees and other revenues.
Higher trading volumes across asset classes are likely to have driven clearing and transaction fees. We expect clearing and transaction fees to be $1.3 billion, indicating a 7.7% increase from the year-ago reported figure. The Zacks Consensus Estimate for second-quarter clearing and transaction fees is pegged at $1.4 billion, indicating a rise of 9.5% from the year-ago reported figure.
CME reported a record quarterly average daily volume of 30.2 million contracts in the second quarter, up 16% year over year. This was driven by record quarterly volume in Interest Rate, Agricultural and Metals products. International ADV reached a record 9.2 million contracts, up 18% year on 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 $196.7 million, indicating a 12.4% increase from the year-ago reported figure. The Zacks Consensus Estimate for second-quarter market data and information services revenues is pegged at $195 million, indicating an increase of 11.4% from the year-ago reported figure.
Expenses are likely to have increased in the to-be-reported quarter due to higher compensation and benefits and technology expenses. We anticipate expenses to be $513.9 million in the to-be-reported quarter, indicating an 8.4% increase from the year-ago reported figure.
Other Stocks to Consider
Here are three finance stocks you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat.
Nasdaq, Inc. (NDAQ - Free Report) has an Earnings ESP of +0.47% and carries a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at 80 cents, indicating a year-over-year increase of 15.9 %. You can see the complete list of today’s Zacks #1 Rank stocks here.
NDAQ’s beat estimates in each of the last four reported quarters.
Intercontinental Exchange Inc. (ICE - Free Report) has an Earnings ESP of +0.57% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $1.76, indicating a year-over-year increase of 15.7%.
ICE’s earnings beat estimates in three of the last four reported quarters while meeting the same in one.
MarketAxess Holdings Inc. (MKTX - Free Report) has an Earnings ESP of +0.95% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $1.94, implying an increase of 12.7% from the year-ago reported figure.
MKTX’s beat estimates in each of the last four reported quarters.