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CME Group (CME) Set to Report Q2 Earnings: What to Expect
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CME Group (CME - Free Report) is slated to report second-quarter 2023 earnings on Jul 26, before market open. CME delivered an earnings surprise in each of the last four quarters, the average being 2.94%.
Factors to Consider
CME Group’s top line in the to-be-reported quarter is likely to have benefited from an increase in clearing, transaction fees and other revenues, and market data and information services. The Zacks Consensus Estimate for the top line is pegged at $1.3 billion, indicating an increase of 8.6% from the year-ago reported figure.
Clearing and transaction fees are likely to have benefited from increased volatility which in turn likely have driven higher volumes. The Zacks Consensus Estimate for clearing and transaction fees is pegged at $1.1 billion, while our estimate is $1 billion.
Recently, CME Group reported solid average daily volume (ADV) for the second quarter of 2023. ADV of 22.9 million contracts decreased 1% year over year, as growth in interest rate, agriculture, energy and metals AVD was offset by decline in equities and FX volume.
Market data and information services revenues are likely to have increased owing to price increases for certain device fees as well as an increase in demand for the products. The consensus estimate for market data and information services is pegged at $163 million, indicating an increase of 7.2% from the year-ago reported figure. We estimate the metric to be $156.5 million.
Expenses are likely to have decreased in the to-be-reported quarter due to lower compensation and benefits, technology, reduced professional fees and outside services, amortization of purchased intangibles, lower depreciation and amortization. We estimate expense to be $428.1 million in the to-be-reported quarter.
The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $2.18, indicating an increase of 10.7% from the year-ago quarter reported figure.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for CME Group in the to-be-reported quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for a likely positive surprise. This is not the case here, as elaborated below.
Earnings ESP: CME Group has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.18. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Some stocks worth considering from the finance sector with a perfect mix of elements to surpass estimates in their upcoming quarterly releases are as follows:
Arch Capital Group (ACGL - Free Report) has an Earnings ESP of +1.57% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2023 earnings is pegged at $1.65 per share, indicating a decrease of 23.1% from the year-ago reported figure.
ACGL’s earnings beat estimates in the last four reported quarters.
Amalgamated Financial (AMAL - Free Report) has an Earnings ESP of +0.70% and a Zacks Rank #3. The Zacks Consensus Estimate for second -quarter 2023 earnings is pegged at 72 cents, implying an increase of 10.8% from the figure reported in the year-ago quarter.
AMAL’s earnings beat estimates in the last four reported quarters.
American Homes 4 Rent (AMH - Free Report) has an Earnings ESP of +3.24% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2023 earnings is pegged at 40 cents, indicating an increase of 5.3% from the year-ago reported figure.
AMH’s earnings beat estimates in one of the last four reported quarters and matched the same in three.
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CME Group (CME) Set to Report Q2 Earnings: What to Expect
CME Group (CME - Free Report) is slated to report second-quarter 2023 earnings on Jul 26, before market open. CME delivered an earnings surprise in each of the last four quarters, the average being 2.94%.
Factors to Consider
CME Group’s top line in the to-be-reported quarter is likely to have benefited from an increase in clearing, transaction fees and other revenues, and market data and information services. The Zacks Consensus Estimate for the top line is pegged at $1.3 billion, indicating an increase of 8.6% from the year-ago reported figure.
Clearing and transaction fees are likely to have benefited from increased volatility which in turn likely have driven higher volumes. The Zacks Consensus Estimate for clearing and transaction fees is pegged at $1.1 billion, while our estimate is $1 billion.
Recently, CME Group reported solid average daily volume (ADV) for the second quarter of 2023. ADV of 22.9 million contracts decreased 1% year over year, as growth in interest rate, agriculture, energy and metals AVD was offset by decline in equities and FX volume.
Market data and information services revenues are likely to have increased owing to price increases for certain device fees as well as an increase in demand for the products. The consensus estimate for market data and information services is pegged at $163 million, indicating an increase of 7.2% from the year-ago reported figure. We estimate the metric to be $156.5 million.
Expenses are likely to have decreased in the to-be-reported quarter due to lower compensation and benefits, technology, reduced professional fees and outside services, amortization of purchased intangibles, lower depreciation and amortization. We estimate expense to be $428.1 million in the to-be-reported quarter.
The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $2.18, indicating an increase of 10.7% from the year-ago quarter reported figure.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for CME Group in the to-be-reported quarter. A stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for a likely positive surprise. This is not the case here, as elaborated below.
Earnings ESP: CME Group has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.18. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
CME Group Inc. Price and EPS Surprise
CME Group Inc. price-eps-surprise | CME Group Inc. Quote
Zacks Rank: CME Group currently carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Some stocks worth considering from the finance sector with a perfect mix of elements to surpass estimates in their upcoming quarterly releases are as follows:
Arch Capital Group (ACGL - Free Report) has an Earnings ESP of +1.57% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2023 earnings is pegged at $1.65 per share, indicating a decrease of 23.1% from the year-ago reported figure.
ACGL’s earnings beat estimates in the last four reported quarters.
Amalgamated Financial (AMAL - Free Report) has an Earnings ESP of +0.70% and a Zacks Rank #3. The Zacks Consensus Estimate for second -quarter 2023 earnings is pegged at 72 cents, implying an increase of 10.8% from the figure reported in the year-ago quarter.
AMAL’s earnings beat estimates in the last four reported quarters.
American Homes 4 Rent (AMH - Free Report) has an Earnings ESP of +3.24% and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2023 earnings is pegged at 40 cents, indicating an increase of 5.3% from the year-ago reported figure.
AMH’s earnings beat estimates in one of the last four reported quarters and matched the same in three.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.