CME Group Inc: CME is ready to unveil its first-quarter 2024 earnings report on Apr 24, prior to market open. CME has consistently surpassed earnings estimates in the last four quarters.
Factors Influencing the Outcome
With a diverse product range, heightened volatility, and a powerful market stance, CME Group is expected to have had a strong performance in the initial quarter.
Revenue growth is likely to show an upward trend driven by market data and information services, clearing, transaction fees, and other revenue streams in the quarter under review. The Zacks Consensus Estimate for revenue stands at $1.5 billion, reflecting a 2.2% increase from the corresponding figure last year.
Clearing and transaction fees may have benefited from heightened Energy and Agriculture trading volumes, poised at $1.2 billion, a slight uptick from the figure reported a year ago.
Market data and information services are expected to witness growth from price hikes in specific products, a surge in device counts, increased custody fees, and enhancements in co-location and other connectivity fees, with a projected figure of $166.2 million.
However, expenses are likely to have surged in the quarter due to escalated compensation and benefits, technology expenditures, and amortization of acquired intangibles, estimated at $468.1 million.
Analysts anticipate first-quarter earnings per share to stand at $2.44, indicating a 0.8% rise from the corresponding figure in the previous year.
Insights from the Zacks Model
The Zacks model does not definitively predict an earnings beat for CME Group this time as a stock necessitates a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) for increased odds of an earnings beat. Currently, CME Group’s Earnings ESP stands at -0.03%, given the Most Accurate Estimate of $2.43, lower than the Zacks Consensus Estimate of $2.44.
Stocks of Interest
Some notable finance sector stocks that exhibit a promising blend to outperform on earnings in the upcoming quarterly releases include:
- Cboe Global Markets: With an Earnings ESP of +0.34% and a Zacks Rank #3, CBOE projects a first-quarter 2024 earnings estimate of $2.03 per share, indicating a 6.8% year-over-year increase.
- Coinbase Global: COIN holds an Earnings ESP of +36.53% and a Zacks Rank #1, anticipating an 89 cents per share earnings for the first quarter, marking a 493.3% year-over-year increase.
- MarketAxess: MKTX has an Earnings ESP of +0.75% and a Zacks Rank #3, with a first-quarter 2024 earnings estimate of $1.85 per share, reflecting a 5.6% year-over-year downturn.
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