CME Group Earnings: Here’s Why Shares are Down Now

CME Group Inc. (NASDAQ:CME) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.45%.

CME Group Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 4.49% to $0.93 in the quarter versus EPS of $0.89 in the year-earlier quarter.

Revenue: Rose 2.53% to $816 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: CME Group Inc. reported adjusted EPS income of $0.93 per share. By that measure, the company beat the mean analyst estimate of $0.89. It beat the average revenue estimate of $803.48 million.

Quoting Management: “Our strong second-quarter results were highlighted by quarterly volume records in foreign exchange and metals and many daily and monthly volume and open interest records in other product areas,” said CME Group Chief Executive Officer Phupinder Gill. “During the quarter, our interest rates complex performed extremely well, with June volumes up 70 percent from the prior June. Furthermore, our cleared OTC interest rate business tripled from the prior quarter, while we saw open interest jump considerably to a current level of $4 trillion. Dramatic improvements in crude oil fundamentals allowed our WTI futures contract to regain its leadership position among energy benchmarks. I am proud of the efforts of our employees and their commitment to help our customers navigate in this new world with the broadest range of solutions available by far in the marketplace.”

Key Stats (on next page)…

Revenue increased 13.55% from $718.6 million in the previous quarter. EPS increased 27.4% from $0.73 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.79 to a profit $0.82. For the current year, the average estimate has moved up from a profit of $3.13 to a profit of $3.25 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)