Financial derivatives exchange CME Group (NASDAQ: CME) will be reporting earnings this Wednesday before the bell. Here’s what to look for.
CME Group met analysts’ revenue expectations last quarter, reporting revenues of $1.54 billion, down 3% year on year. It was a mixed quarter for the company, with but revenue in line with analysts’ estimates.
Is CME Group a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting CME Group’s revenue to grow 7.8% year on year to $1.64 billion, improving from the 6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.74 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. CME Group has missed Wall Street’s revenue estimates three times over the last two years.
Looking at CME Group’s peers in the capital markets segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Nasdaq delivered year-on-year revenue growth of 13.4%, beating analysts’ expectations by 1.4%, and MSCI reported revenues up 10.6%, in line with consensus estimates. Nasdaq traded down 1.8% following the results while MSCI was up 4.6%.
Read our full analysis of Nasdaq’s results here and MSCI’s results here.
Investors in the capital markets segment have had fairly steady hands going into earnings, with share prices down 1.9% on average over the last month. CME Group is up 6.1% during the same time and is heading into earnings with an average analyst price target of $289.71 (compared to the current share price of $290.89).
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