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CME Group (CME) Q1 Earnings Beat, Revenues Miss Estimates
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CME Group Inc. (CME - Free Report) reported first-quarter 2019 adjusted earnings per share of $1.62, which beat the Zacks Consensus Estimate by 1.3%. However, the bottom line declined 12.9% year over year.
The quarter witnessed low levels of volatility in several product areas. However, product innovation and a growing proportion of volume from customers outside the United States helped.
Net income came in at $1.39 per share, which plunged 21% year over year.
CME Group’s revenues of $1.2 billion increased 6.4% year over year. The top line however missed the Zacks Consensus Estimate by 1%. The year-over-year increase in revenues can be attributed to higher market data and information services (up 37% year over year), and other (up 139% from the prior-year period).
Total expenses increased 49% year over year to $548.6 million during the reported quarter, attributable to higher compensation and benefits, technology expenses, professional fees and outside services, depreciation and amortization as well as other.
Operating income declined 14.8% from the prior-year quarter to $631 million.
Average daily volume was 18.6 million contracts in the quarter. This marked the third-highest quarter ever in terms of average daily volume. However, it slipped 16% year over year. Average rate per contract declined in five product lines.
Financial Update
As of Mar 31, 2019, CME Group had $1.1 billion of cash and marketable securities, down 4.4% from 2018 end. As of Mar 31, 2019, long-term debt of $4.3 billion increased 12.2% from 2018 end.
As of Mar 31, 2019, the company had total assets worth $71.6 billion, down 7.6% from 2018 end.
Performance of Other Companies in Securities Exchange Industry
Nasdaq Inc. (NDAQ - Free Report) and MarketAxess Holdings Inc. (MKTX - Free Report) earnings beat the respective Zacks Consensus Estimate.
Upcoming Release
Intercontinental Exchange Inc. (ICE - Free Report) is due to release its first-quarter results on May 2. The Zacks Consensus Estimate for first-quarter earnings is pegged at 89 cents, indicating a decline of 1.1% from the year-ago period reported figure.
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CME Group (CME) Q1 Earnings Beat, Revenues Miss Estimates
CME Group Inc. (CME - Free Report) reported first-quarter 2019 adjusted earnings per share of $1.62, which beat the Zacks Consensus Estimate by 1.3%. However, the bottom line declined 12.9% year over year.
The quarter witnessed low levels of volatility in several product areas. However, product innovation and a growing proportion of volume from customers outside the United States helped.
Net income came in at $1.39 per share, which plunged 21% year over year.
CME Group Inc. Price, Consensus and EPS Surprise
CME Group Inc. Price, Consensus and EPS Surprise | CME Group Inc. Quote
Performance in Detail
CME Group’s revenues of $1.2 billion increased 6.4% year over year. The top line however missed the Zacks Consensus Estimate by 1%. The year-over-year increase in revenues can be attributed to higher market data and information services (up 37% year over year), and other (up 139% from the prior-year period).
Total expenses increased 49% year over year to $548.6 million during the reported quarter, attributable to higher compensation and benefits, technology expenses, professional fees and outside services, depreciation and amortization as well as other.
Operating income declined 14.8% from the prior-year quarter to $631 million.
Average daily volume was 18.6 million contracts in the quarter. This marked the third-highest quarter ever in terms of average daily volume. However, it slipped 16% year over year. Average rate per contract declined in five product lines.
Financial Update
As of Mar 31, 2019, CME Group had $1.1 billion of cash and marketable securities, down 4.4% from 2018 end. As of Mar 31, 2019, long-term debt of $4.3 billion increased 12.2% from 2018 end.
As of Mar 31, 2019, the company had total assets worth $71.6 billion, down 7.6% from 2018 end.
Zacks Rank
CME Group currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies in Securities Exchange Industry
Nasdaq Inc. (NDAQ - Free Report) and MarketAxess Holdings Inc. (MKTX - Free Report) earnings beat the respective Zacks Consensus Estimate.
Upcoming Release
Intercontinental Exchange Inc. (ICE - Free Report) is due to release its first-quarter results on May 2. The Zacks Consensus Estimate for first-quarter earnings is pegged at 89 cents, indicating a decline of 1.1% from the year-ago period reported figure.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 7 stocks to watch. The report is only available for a limited time.
See 7 breakthrough stocks now>>