CME Group (CME) Q2 Earnings, Revenues Top Estimates, Rise Y/Y
CME Group CME reported second-quarter 2022 adjusted earnings per share of $1.97, which beat the Zacks Consensus Estimate of $1.92. The bottom line increased 20.1% year over year due to higher clearing and transaction fees and market data and information services.
Average daily volume increased in three out of the six products lines.
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 $1.2 billion increased 4.9% year over year. The year-over-year increase was primarily due to higher clearing and transaction fees (up 10.2% year over year) and market data and information services (up 4.5% year over year). The top line beat the Zacks Consensus Estimate by 5%.
Total expenses decreased 3.4% year over year to $487.5 million quarter, attributable to lower compensation and benefits, technology, professional fees and outside services, depreciation and amortization and amortization of purchased intangibles.
Operating income increased 15.7% from the prior-year quarter to $750 million.
ADV was 23.1 million contracts, including non-U.S. ADV of 6.3 million contracts, led by 40% growth in Latin America, 36% in Asia and 15% in EMEA. This marks the third-highest quarterly average daily volume.
Financial Update
As of Jun 30, 2022, CME Group had $1.9 billion of cash and marketable securities, down 33.7% from 2021 end. As of Jun 30, 2022, long-term debt of $3.4 billion increased 27.5% from 2021 end.
As of Jun 30, 2022, CME had total equity worth $27.7 billion, up 2.2% from 2021 end.
Capital Deployment
CME Group paid $363 billion in dividends, taking the tally to $18.5 billion since the implementation of the variable dividend policy in early 2012.
Zacks Rank
CME 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 Industry Players
Of the industry players that have reported second-quarter results so far, Nasdaq Inc. NDAQ and MarketAxess Holdings MKTX beat the respective Zacks Consensus Estimate for earnings.
Nasdaq reported second-quarter 2022 adjusted earnings per share of $2.07, beating the Zacks Consensus Estimate of $1.91 by 8.4%. The bottom line improved 8.9% year over year. Nasdaq’s revenues of $893 million increased 5.6% year over year. The top line beat the Zacks Consensus Estimate by 1.1%. The operating margin of 54% remained unchanged year over year.
MarketAxess’ second-quarter 2022 earnings per share of $1.78 outpaced the Zacks Consensus Estimate by 4.1% and improved 1% year over year. Total revenues of $182 million increased 3% year over year but fell short of the consensus mark by 1.2%. U.S. high-grade trading volume of MarketAxess increased 11% year over year while Emerging markets' trading volume rose 11.5% year over year.
Upcoming Release
Intercontinental Exchange Inc. ICE is scheduled to release second-quarter 2022 earnings on Aug 4. The Zacks Consensus Estimate for Intercontinental Exchange’s second-quarter earnings is pegged at $1.28, indicating an increase of 10.3% from the year-ago reported figure.
Intercontinental Exchange beat estimates in three of the last four reported quarters while meeting the same once.
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