CME Group Inc. Earnings Cheat Sheet: Powering Ahead

S&P 500 (NYSE:SPY) component CME Group Inc. (NASDAQ:CME) reported net income above Wall Street’s expectations for the second 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 Second Quarter

Results: Net income for the investment brokerage rose to $293.7 million ($4.38 per share) vs. $270.7 million ($4.11 per share) in the same quarter a year earlier. This marks a rise of 8.5% from the year earlier quarter.

Revenue: Revenue was $838.3 million last quarter.

Actual vs. Wall St. Expectations: CME beat the mean analyst estimate of $4.17 per share. It beat the average revenue estimate of $821.3 million.

Quoting Management: “CME Group delivered record revenue during the second quarter, driven by strong performance across interest rates, metals and agricultural commodities,” said CME Group Executive Chairman Terry Duffy.”Volume accelerated during the period and we reached record open interest of more than 100million contracts in June. These results show that CME Group is uniquely positioned to provide the solutions customers need in today’s challenging economic and geopolitical environment, and the company will continue to take a leadership role in contributing to the resolution of legislative and regulatory issues so important to markets worldwide.”

Key Stats:

The company has now beaten estimates the last two quarters. In the first quarter, it topped expectations with net income of $4.36 versus a mean estimate of net income of $4.18 per share.

The company has now been profitable for the last nine quarters, and for the last five, profit has risen year over year by an average of 27.6%. The quarter with the biggest boost was the first, which saw a 90.1% surge.

The company’s cost of sales rose 13.5% from a year earlier. Last quarter, cost of sales was 20.6% of revenue versus 18.7% a year earlier.

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).

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(Source: Xignite Financials)