CME Group Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component CME Group, Inc. (NASDAQ:CME) will unveil its latest earnings on Tuesday, November 1, 2011. 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 $4.64 per share, a rise of 26.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $4.16. Between one and three months ago, the average estimate moved up. It has risen from $4.53 during the last month. Analysts are projecting profit to rise by 13.3% versus last year to $17.52.

Past Earnings Performance: The company has beaten estimates the last two quarters and is coming off a quarter where it topped the forecasts by 21 cents, reporting profit of $4.38 per share against a mean estimate of net income of $4.17. In the first quarter, the company exceeded forecasts by 18 cents with profit of $4.36 versus a mean estimate of net income of $4.18.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 18.9% in revenue from the year-earlier quarter to $872.3 million.

Analyst Ratings: Analysts are bullish on this stock with 12 analysts rating it as a buy, none rating it as a sell and six rating it as a hold.

A Look Back: In the second quarter, profit rose 8.5% to $293.7 million ($4.38 a share) from $270.7 million ($4.11 a share) the year earlier, exceeding analyst expectations. Revenue rose 3% to $838.3 million from $813.9 million.

Key Stats:

Revenue has risen the past four quarters. Revenue rose 20% in the first quarter from the year earlier, climbed 14.3% in the fourth quarter of the last fiscal year from the year-ago quarter and 12.8% in the third quarter of the last fiscal year.

The company has now been profitable for the last eight quarters, and for the last four, profit has risen year over year by an average of 29%. The quarter with the biggest boost was the first quarter, which saw a 90.1% surge.

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), Deutsche Boerse AG (DB1), ITEX Corporation (ITEX), and Mercado de Valores de Buenos Aires S.A. (VALO).

Stock Price Performance: During August 2, 2011 to October 26, 2011, the stock price had fallen $15.27 (-5.5%) from $278.70 to $263.43. 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% (+$17.26) over that span. It saw one of its worst periods between May 19, 2011 and May 27, 2011 when shares fell for seven-straight days, falling 5.4% (-$16.10) over that span. Shares are down $53.43 (-16.9%) year to date.

(Source: Xignite Financials)

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