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CME Group (CME) Q1 Earnings Beat, Revenues Miss Estimates

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CME Group Inc. CME reported first-quarter 2021 adjusted earnings per share of $1.79, which beat the Zacks Consensus Estimate of $1.75. The bottom line decreased 23.2% year over year due to lower clearing and transaction fees and market data and information services. Average daily volume decreased in all the six products lines.

First-quarter average daily volume marked the third-highest quarterly figure.

CME Group Inc. Price, Consensus and EPS Surprise

CME Group Inc. Price, Consensus and EPS Surprise
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 $1.3 billion decreased 17.7% year over year. The year-over-year decrease was primarily due to lower clearing and transaction fees (down 21.3% year over year) and market data and information services (down 9.7% year over year). The top line missed the Zacks Consensus Estimate by 1%.

Total expenses decreased 6% year over year to $528.2 million during the reported quarter, attributable to lower professional fees and outside services and licensing and other fee agreements.

Operating income decreased 24.5% from the prior-year quarter to $725.1 million.

Average daily volume decreased 19.2% year over year to 21.8 million contracts in the quarter. Average rate per contract decreased 2.7%.

Financial Update

As of Mar 31, 2021, CME Group had $1.041.6 billion of cash and marketable securities, down 39.9% from 2020 end. As of Mar 31, 2021, long-term debt of $3.4 billion remained flat with 2020 end.

As of Mar 31, 2021, the company had total equity worth $26.6 billion, up 0.8% from 2020 end.

Capital Deployment

The company paid out dividends of $1.2 billion in the first quarter, including the annual variable dividend for 2020 of $895 million. CME Group has returned more than $15.6 billion to shareholders in the form of dividends 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.

Performance of Other Securities Exchange Industry Players

First-quarter earnings of Nasdaq NDAQ beat the Zacks Consensus Estimate while that of MarketAxess Holdings MKTX missed the same.

Upcoming Release

Intercontinental Exchange Inc. ICE is scheduled to release first-quarter earnings on Apr 29. The Zacks Consensus Estimate for the first quarter is pegged at $1.30.

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