2 Financial Stocks Slightly Lower After Earnings

CME Group Inc. (NASDAQ:CME) reported its results for the fourth quarter. Net income for CME Group Inc. rose to $745.9 million ($11.25 per share) vs. $196.2 million ($2.93 per share) in the same quarter a year earlier. This is a more than threefold rise from the year earlier quarter. Revenue was $599.1 million last quarter. CME Group Inc. reported adjusted net income of $3.55 per share. By that measure, the company fell short of mean estimate of $3.67 per share. It fell short of the average revenue estimate of $754 million.

“Despite a very challenging environment, 2011 was another productive year for CME Group,” said CME Group Executive Chairman Terry Duffy. “During the year we delivered the highest volume in our history, approaching 3.4 billion contracts traded. We have performed well navigating through uncertain events such as the Fed’s zero interest rate policy, the Eurozone crisis and the final rulemaking for Dodd-Frank. As market participants adjusted to these factors during the fourth quarter, 2012 has started out strong, with open interest up 11 percent to date.”

Competitors to Watch: IntercontinentalExchange, Inc. (NYSE:ICE), NYSE Euronext (NYSE:NYX), NASDAQ OMX Group, Inc. (NASDAQ:NDAQ), CBOE Holdings, Inc (NASDAQ:CBOE), MarketAxess Holdings Inc. (NASDAQ:MKTX).

Evercore Partners Inc. (NYSE:EVR) reported net income above Wall Street’s expectations for the fourth quarter. Pro forma adjusted net income for Evercore Partners Inc. rose to $14.1 million (32 cents per share) vs. $10.9 million (27 cents per share) in the same quarter a year earlier. This is a 29% increase from the year earlier quarter. Evercore Partners Inc. reported adjusted pro forma net income of 32 cents per share. By that measure, the company beat the mean estimate of 28 cents per share. It fell short of the average revenue estimate of $130.4 million.

“2011 was a year of milestones for Evercore. Through strong teamwork among our professionals, we served a record number of clients, reinforcing our strong culture of excellence and integrity,” said Ralph Schlosstein, President and Chief Executive Officer. “We delivered record results in each of our businesses with strong top line and bottom line growth. In Investment Banking, we consistently gained market share while maintaining high levels of productivity. We invested in the future growth of our business, significantly expanding our capacity to serve clients in Europe and in strategically important industries, including energy and technology.”

Competitors to Watch: Greenhill & Co., Inc. (NYSE:GHL), Lazard Ltd (NYSE:LAZ), FBR Capital Markets Corp. (NASDAQ:FBCM), KBW, Inc. (NYSE:KBW), Piper Jaffray Companies (NYSE:PJC), Jefferies Group, Inc. (NYSE:JEF), Cowen Group, Inc. (NASDAQ:COWN), Gleacher & Company, Inc. (NASDAQ:GLCH), BlackRock (NYSE:BLK), Goldman Sachs (NYSE:GS), Morgan Stanley (NYSE:MS), Citigroup (NYSE:C), Bank of America (NYSE:BAC), JP Morgan (NYSE:JPM) and Credit Suisse Group AG (NYSE:CS).

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com