CME Group Inc. Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component CME Group, Inc. (NASDAQ:CME) will unveil its latest earnings on Thursday, February 2, 2012. CME Group provides risk management and investment services to customers, including professional traders, financial institutions, investors, corporations, manufacturers, and governments.

CME Group, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $3.68 per share, a decline of 2.4% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $4.22. Between one and three months ago, the average estimate moved down. It also has dropped from $3.92 during the last month. Analysts are projecting profit to rise by 11.1% versus last year to $17.19.

Past Earnings Performance: Last quarter, the company reported profit of $4.74 per share versus a mean estimate of net income of. The company has beaten estimates for the past three quarters.

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Wall St. Revenue Expectations: On average, analysts predict $754 million in revenue this quarter, a decline of 1.2% from the year ago quarter. Analysts are forecasting total revenue of $3.3 billion for the year, a rise of 10% from last year’s revenue of $3 billion.

Analyst Ratings: Analysts are bullish on this stock with 11 analysts rating it as a buy, none rating it as a sell and six rating it as a hold.

A Look Back: In the third quarter, profit rose 29.4% to $316.1 million ($4.74 a share) from $244.3 million ($3.66 a share) the year earlier, exceeding analyst expectations. Revenue rose 16.1% to $851.7 million from $733.4 million.

Key Stats:

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

Revenue has risen the past four quarters. Revenue rose 3% in the second quarter from the year earlier, climbed 20% in the first quarter from the year-ago quarter and 14.3% in the fourth quarter of the last fiscal year.

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).

Stock Price Performance: During October 31, 2011 to January 27, 2012, the stock price had fallen $33.07 (-12.1%) from $273.95 to $240.88. The stock price saw one of its best stretches over the last year between June 23, 2011 and July 1, 2011 when shares rose for seven-straight days, rising 6.2% (+$17.15) over that span. It saw one of its worst periods between January 3, 2012 and January 11, 2012 when shares fell for seven-straight days, falling 8% (-$19.63) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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