We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
CME Group (CME) Q3 Earnings and Revenues Top Estimates
Read MoreHide Full Article
CME Group Inc. (CME - Free Report) reported third-quarter 2019 adjusted earnings per share of $1.90, which beat the Zacks Consensus Estimate by 8.6%. The bottom line increased 31% year over year. The upside was driven by solid trading volumes.
Performance in Detail
CME Group’s revenues of $1.3 billion increased 41.3% year over year. The top line beat the Zacks Consensus Estimate by 0.6%. The year-over-year increase in revenues can be attributed to higher clearing and transaction fees (up 38.3% year over year), market data and information services (up 17.3% year over year), and other (up 160% from the prior-year period).
Total expenses increased 67.1% year over year to $592.1 million during the reported quarter, attributable to higher compensation and benefits, technology expenses, professional fees and outside services, licensing and other fee agreements, depreciation and amortization as well as other.
Operating income increased 24.6% from the prior-year quarter to $685.2 million.
Average daily volume increased 30% year over year to 20.2 million contracts in the quarter. The upside was driven by strong, double-digit growth in interest rates, equity index and metals products, as well as robust trading volumes outside the United States. Options products and newer, innovative contracts like SOFR and Micro E-mini Equity futures contributed to substantial volume growth during the quarter.
CME Group's ADV transacted outside the United States reached 5.3 million contracts during the quarter, up 40% year over year, including 34% growth in Europe, 61% growth in Asia and 87% growth in greater Latin America.
As of Sep 30, 2019, CME Group had $1.2 billion of cash and marketable securities, down 10.9% from 2018 end. As of Sep 30, 2019, long-term debt of $3.9 billion increased 1.2% from 2018 end.
As of Sep 30, 2019, the company had total assets worth $79.4 billion, up 2.5% from 2018 end.
Capital Deployment
CME Group paid $268 million in dividends in the third quarter. The company has returned about $12 billion to shareholders in the form of dividends since the implementation of the variable dividend policy in early 2012.
Performance of Other Securities Exchange Industry Players
Third-quarter earnings of Nasdaq (NDAQ - Free Report) and MarketAxess Holdings (MKTX - Free Report) beat the Zacks Consensus Estimate.
Upcoming Release
Intercontinental Exchange (ICE - Free Report) is slated to report its second-quarter results on Oct 31, before market open. The Zacks Consensus Estimate is pegged at 92 cents, indicating 11.8% increase from the year-ago reported figure.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
Image: Bigstock
CME Group (CME) Q3 Earnings and Revenues Top Estimates
CME Group Inc. (CME - Free Report) reported third-quarter 2019 adjusted earnings per share of $1.90, which beat the Zacks Consensus Estimate by 8.6%. The bottom line increased 31% year over year. The upside was driven by solid trading volumes.
Performance in Detail
CME Group’s revenues of $1.3 billion increased 41.3% year over year. The top line beat the Zacks Consensus Estimate by 0.6%. The year-over-year increase in revenues can be attributed to higher clearing and transaction fees (up 38.3% year over year), market data and information services (up 17.3% year over year), and other (up 160% from the prior-year period).
Total expenses increased 67.1% year over year to $592.1 million during the reported quarter, attributable to higher compensation and benefits, technology expenses, professional fees and outside services, licensing and other fee agreements, depreciation and amortization as well as other.
Operating income increased 24.6% from the prior-year quarter to $685.2 million.
Average daily volume increased 30% year over year to 20.2 million contracts in the quarter. The upside was driven by strong, double-digit growth in interest rates, equity index and metals products, as well as robust trading volumes outside the United States. Options products and newer, innovative contracts like SOFR and Micro E-mini Equity futures contributed to substantial volume growth during the quarter.
CME Group's ADV transacted outside the United States reached 5.3 million contracts during the quarter, up 40% year over year, including 34% growth in Europe, 61% growth in Asia and 87% growth in greater Latin America.
CME Group Inc. Price, Consensus and EPS Surprise
CME Group Inc. price-consensus-eps-surprise-chart | CME Group Inc. Quote
Financial Update
As of Sep 30, 2019, CME Group had $1.2 billion of cash and marketable securities, down 10.9% from 2018 end. As of Sep 30, 2019, long-term debt of $3.9 billion increased 1.2% from 2018 end.
As of Sep 30, 2019, the company had total assets worth $79.4 billion, up 2.5% from 2018 end.
Capital Deployment
CME Group paid $268 million in dividends in the third quarter. The company has returned about $12 billion to shareholders in the form of dividends since the implementation of the variable dividend policy in early 2012.
Zacks Rank
CME Group currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Securities Exchange Industry Players
Third-quarter earnings of Nasdaq (NDAQ - Free Report) and MarketAxess Holdings (MKTX - Free Report) beat the Zacks Consensus Estimate.
Upcoming Release
Intercontinental Exchange (ICE - Free Report) is slated to report its second-quarter results on Oct 31, before market open. The Zacks Consensus Estimate is pegged at 92 cents, indicating 11.8% increase from the year-ago reported figure.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>