Zacks Investment Research | Apr 28, 2019 09:53PM ET
CME Group Inc. (NASDAQ:CME) is set to report first-quarter 2019 earnings on May 1, before market open. The company boasts a stellar record of delivering positive earnings surprise in the last 11 quarters.
Let’s see what is in store for the company in the soon-to-be reported quarter.
Expansion of futures products in emerging markets, options business, non-transaction related opportunities and OTC offerings are likely to aid top-line growth in the to-be reported quarter. The Zacks Consensus Estimate for revenues stands at $1.2 billion, up 7.5% year over year.
CME group boasts a premier position with about 90% market share of the global futures trading and clearing services. The Zacks Consensus Estimate for clearing and transaction fees is pegged at $993 million, up nearly 2% year over year.
In first-quarter 2019, average daily volumes (ADV) declined 16% year over year to 18.6 million contracts per day on lower volumes across product lines. Energy volume of 2.3 million contracts decreased 15%. Interest rate volume of 10.3 million contracts per day declined 14% while Equity index volume of 3.2 million contracts per day decreased 23%. Also, Metals volume of 0.6 million contracts per day declined 21% whereas Foreign exchange volumes contracted 20% to 0.9 million contracts per day. Agricultural volume of 1.4 million contracts per day witnessed a decline of 13% year over year.
Despite expense discipline in place, the company may witness higher expenses in the soon-to-be-reported quarter.
The Zacks Consensus Estimate for earnings per share is pegged at $1.60, indicating a decline of 14% from the year-ago quarter reported figure.
CME Group Inc. Price and EPS Surprise
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