CME Group (CME) To Report Q4 Earnings: What's In Store?
Zacks Investment Research | Feb 10, 2020 10:44PM ET
CME Group (NASDAQ:CME) is slated to report fourth-quarter 2019 results on Feb 12, before market open.
The Zacks Consensus Estimate for the to-be-reported quarter’s earnings stands at $1.54, implying nearly 13% decline from the year-earlier reported figure.
The company’s earnings surpassed estimates in each of the last four quarters, the average being 2.88%.
Factors at Play
CME Group’s overall performance is likely to have suffered in the quarter under review due to lower revenues. The Zacks Consensus Estimate for revenues is pegged at $1.1 billion, indicating a 7.3% fall from the year-ago reported figure. Clearing and transaction fees of the company might also have reduced. The consensus mark for the same suggests a decrease of 11.2% from the prior-year reported number.
Weak average daily volume is expected to have dented the top line to some extent. The Zacks Consensus Estimate for Average Daily Volume (including Nymex and Comex) hints at a 19% deterioration from the year-ago reported number.
The company might have also borne the brunt of a platform winding up in Italy.
Moreover, expenses are likely to have shot up due to higher compensation and benefits, technology expenses, professional fees and outside services, licensing and other fee agreements plus depreciation and amortization costs.
The company is likely to have benefited from a solid cash flow in the quarter under review.
Consistent capital deployment is expected to have continued in the fourth quarter, aiding bottomline.
What Our Quantitative Model States
Our proven model predicts an earnings beat for CME Group this time around. The combination of a positive Zacks Investment Research
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