CME Group Inc. Earnings Cheat Sheet: Profit Increases Again

S&P 500 (NYSE:SPY) component CME Group Inc. (NASDAQ:CME) reported its results for the third quarter. CME Group 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 Third Quarter

Results: Net income for CME Group Inc. rose to $316.1 million ($4.74 per share) vs. $244.3 million ($3.66 per share) in the same quarter a year earlier. This marks a rise of 29.4% from the year earlier quarter.

Revenue: Revenue was $874.2 million last quarter.

Actual vs. Wall St. Expectations: CME beat the mean analyst estimate of $4.64 per share. Analysts were expecting revenue of $872.3 million.

Quoting Management: “CME Group’s core business continued to perform very well, and during the quarter we delivered significant growth in revenue, operating income and earnings per share,” said CME Group Executive Chairman Terry Duffy. “On the regulatory front, we were pleased to see the CFTC rulemaking on position limits establish equivalent limits for physically and cash-settled contracts, other than natural gas. We will continue to work closely with regulators and market participants during this important rulemaking process.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 8.5% and in the first quarter, the figure rose 90.1%.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 21 cents in the second quarter and by 18 cents in the first quarter.

Looking Forward: Expectations for the company’s next quarter results are lower than they have been. Over the past sixty days, the average estimate for fourth quarter has fallen from $4.25 per share to $4.22. The average estimate for the fiscal year is $17.52 per share, a rise from $17.10 ninety days ago.

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

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(Source: Xignite Financials)