CME Group Earnings Cheat Sheet: Achieves Record Revenues

S&P 500 (NYSE:SPY) component CME Group Inc. (NASDAQ:CME) reported net income above Wall Street’s expectations for the first quarter. CME Group Inc provides risk management and investment services to customers, including professional traders, financial institutions, investors, corporations, manufacturers and governments.

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CME Group Earnings Cheat Sheet for the First Quarter

Results: Net income rose to $457 million ($6.81/share) vs. $240.2 million ($3.62/share) in the same quarter a year earlier. A rise of 90.3% from the year earlier quarter.

Revenue: Revenue was $831.6 million last quarter.

Actual vs. Wall St. Expectations: CME reported adjusted net income of $4.36 per share. By this measure, the company beat the mean analyst estimate of $4.19/share. Estimates ranged from $3.72 per share to $4.34 per share.

Quoting Management: “CME Group delivered record revenue during the first quarter, demonstrating strength across the entire business while continuing to invest in future growth,” said CME Group Executive Chairman Terry Duffy. “Both supply and demand dynamics, as well as geopolitical change, lifted commodities, with both exchange-traded and OTC agricultural, energy and metals products all surpassing previous quarterly revenue highs, while financial products also grew significantly. We continued to expand our global reach and deliver excellent performance during non-U.S. trading hours, with average daily volume growing 27 percent to 1.75 million contracts during the quarter, an indication of the deepening liquidity in our globally relevant products. Further, performance metrics related to our partnerships with exchanges in Brazil, Malaysia and Korea were also strong for the quarter, in part due to the expanded distribution we were able to provide. In addition, we launched south-to-north order routing with our exchange partner in Mexico in April.”

Key Stats: Net income has increased 30.1% year over year on average across the last five quarters. The biggest gain came in the most recent quarter, when income climbed 90.3% from the year earlier quarter.

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

Today’s Performance: Shares of CME are trading at $309.89 as of April 28, 2011 at 7:36 AM ET, unchanged from the previous close.


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