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CME Group (CME) Q2 Earnings Top on Record Trading Volume
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CME Group (CME - Free Report) reported second-quarter 2024 adjusted earnings per share of $2.56, which beat the Zacks Consensus Estimate by 2%. The bottom line increased 11.3% year over year.
Quarterly results benefited from a record in trading volumes. Average daily volume increased in its six asset classes with average daily volume (ADV) up 16% in commodities and 13% in financial markets.
Shares gained 1.2% in the pre-market trading session to reflect the outperformance.
CME Group’s revenues of $1.5 billion increased 12.5% year over year. The year-over-year increase was primarily due to higher clearing and transaction fees (up 11.8% year over year), market data and information services (up 7.3% year over year) and other (36.8% year over year). The top line beat the Zacks Consensus Estimate by almost 1%.
Total expenses inched up 2% year over year to $531.9 million, attributable to higher technology, and licensing and other fee agreements. It exceeded our estimate of $552.4 million.
Operating income increased 20% from the prior-year quarter to $1 billion. Our estimate was $961.8 million.
ADV was 25.9 million contracts, including non-U.S. ADV, which reached a record 7.8 million contracts. The total average rate per contract was 70.8 cents.
Financial Update
As of Jun 30, 2024, CME Group had $2 billion of cash and marketable securities, down 48.5% from the 2023-end level.
As of Jun 30, 2024, long-term debt was $2.7 billion, down 21.7% from 2023-end. As of Jun 30, 2024, CME had shareholders' equity worth $27.6 billion, up 3.4% from the end of 2023.
Capital Deployment
CME Group paid out $419 billion in dividends, taking the payout to $25.2 billion since the implementation of the variable dividend policy in early 2012.
Nasdaq (NDAQ - Free Report) will report second-quarter 2024 results on Jul 25, before market open. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at 64 cents, suggesting a decrease of 9.9% from the year-ago quarter’s reported figure.
NDAQ’s earnings beat estimates in three of the last four quarters while missing in the remaining one.
Intercontinental Exchange (ICE - Free Report) will report second-quarter 2024 results on Aug 1, before market open. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $1.48, indicating an increase of 3.5% from the year-ago quarter’s reported figure.
ICE’s earnings beat estimates in each of the last four quarters.
Cboe Global Markets (CBOE - Free Report) will report second-quarter 2024 results on Aug 2, before market open. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $2.09, suggesting an increase of 17.4% from the year-ago quarter’s reported figure.
CBOE’s earnings beat estimates in each of the last four reported quarters.
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CME Group (CME) Q2 Earnings Top on Record Trading Volume
CME Group (CME - Free Report) reported second-quarter 2024 adjusted earnings per share of $2.56, which beat the Zacks Consensus Estimate by 2%. The bottom line increased 11.3% year over year.
Quarterly results benefited from a record in trading volumes. Average daily volume increased in its six asset classes with average daily volume (ADV) up 16% in commodities and 13% in financial markets.
Shares gained 1.2% in the pre-market trading session to reflect the outperformance.
CME Group Inc. Price, Consensus and EPS Surprise
CME Group Inc. price-consensus-eps-surprise-chart | CME Group Inc. Quote
Performance in Detail
CME Group’s revenues of $1.5 billion increased 12.5% year over year. The year-over-year increase was primarily due to higher clearing and transaction fees (up 11.8% year over year), market data and information services (up 7.3% year over year) and other (36.8% year over year). The top line beat the Zacks Consensus Estimate by almost 1%.
Total expenses inched up 2% year over year to $531.9 million, attributable to higher technology, and licensing and other fee agreements. It exceeded our estimate of $552.4 million.
Operating income increased 20% from the prior-year quarter to $1 billion. Our estimate was $961.8 million.
ADV was 25.9 million contracts, including non-U.S. ADV, which reached a record 7.8 million contracts. The total average rate per contract was 70.8 cents.
Financial Update
As of Jun 30, 2024, CME Group had $2 billion of cash and marketable securities, down 48.5% from the 2023-end level.
As of Jun 30, 2024, long-term debt was $2.7 billion, down 21.7% from 2023-end. As of Jun 30, 2024, CME had shareholders' equity worth $27.6 billion, up 3.4% from the end of 2023.
Capital Deployment
CME Group paid out $419 billion in dividends, taking the payout to $25.2 billion since the implementation of the variable dividend policy in early 2012.
Zacks Rank
CME Group currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Nasdaq (NDAQ - Free Report) will report second-quarter 2024 results on Jul 25, before market open. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at 64 cents, suggesting a decrease of 9.9% from the year-ago quarter’s reported figure.
NDAQ’s earnings beat estimates in three of the last four quarters while missing in the remaining one.
Intercontinental Exchange (ICE - Free Report) will report second-quarter 2024 results on Aug 1, before market open. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $1.48, indicating an increase of 3.5% from the year-ago quarter’s reported figure.
ICE’s earnings beat estimates in each of the last four quarters.
Cboe Global Markets (CBOE - Free Report) will report second-quarter 2024 results on Aug 2, before market open. The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $2.09, suggesting an increase of 17.4% from the year-ago quarter’s reported figure.
CBOE’s earnings beat estimates in each of the last four reported quarters.