CME Group Inc.
) reported first-quarter 2014 operating earnings per share of 83
cents. Results were in line with the Zacks Consensus Estimate but
outpaced the year-ago quarter figure of 73 cents.
Consequently, operating net income jumped 13.6% year over year
to $277.7 million. This excluded the after-tax effect of foreign
exchange transaction gains of $10.9 million during the reported
quarter against losses of $8.6 million in the year-ago quarter.
Including extraordinary items, GAAP net income stood at $266.8
million or 79 cents a share in the reported quarter against
$235.8 million or 71 cents per share in the year-ago period.
CME Group's total revenue climbed 8.2% year over year to
$777.4 million but missed the Zacks Consensus Estimate of $778
million by a whisker. Growth primarily resulted from an accretion
in market data and information services as well as clearing and
transaction fees due to incremental volumes within interest rate,
equity index and agricultural commodities. However, lower average
rate per contract as well as deteriorated revenues from access
and communication fees partially offset the upside.
CME Group's average daily volume jumped 9% year over year to
13.7 million contracts in the reported quarter, primarily driven
by a surge of 19% in volumes from interest rate products.
However, total average rate per contract reduced 1.7% from the
year-ago quarter to 76.7 cents. Nonetheless, the volumes
constitute mostly lower-priced products across asset-class that
require higher volume discounts.
clearing and transaction fees
rose 9.9% year over year to $652.2 million, accounting for about
84% of the total revenue. Additionally, revenues from
and information services
increased 10.5% to $89.4 million. However, revenues from
access and communication fee
dipped 5.1% to $20.4 million, whereas
revenues decelerated 33% to $15.4 million.
Meanwhile, total operating expenses edged up 3.1% year over
year to $322.9 million. Consequently, operating income rose 12.1%
to $454.5 million, modestly improving operating margin to 58.5%
from 56.4% in the year-ago quarter.
CME Group recorded non-operating expenses of $8.1 million
against $17.9 million in the year-ago quarter, primarily owing to
lower investment income and lower borrowing costs in the reported
As of Mar 31, 2014, CME Group had $1.1 billion of cash and
marketable securities, lower than $2.54 billion at 2013-end,
while long-term debt stood at $2.1 billion, at par with the
2013-end level. The company paid off its short-term debt worth
$749.9 million in Feb 2014.
As of Mar 31, 2014, CME Group had total assets of $53.17
billion (down from $54.28 billion as of Dec 31, 2013), while
total equity stood at $21.31 billion (up from $21.16 billion as
of Dec 31, 2013). The company did not repurchase any shares
during the reported quarter.
On Feb 5, 2014, the board of CME Group hiked its quarterly
dividend by 4% to 47 cents per share from prior payout of 45
cents. The raised dividend was paid on Mar 25, 2014 to
shareholders of record as on Mar 10.
Earlier, on Jan 14, 2014, CME Group paid an annual variable
dividend of $2.60 per share to shareholders of record as on Dec
While CME Group carries a Zacks Rank #3 (Hold), some
better-ranked financial stocks like
General Finance Corp.
Euronet Worldwide Inc.
), sporting a Zacks Rank #1 (Strong Buy), are worth
CME GROUP INC (CME): Free Stock Analysis
EURONET WORLDWD (EEFT): Free Stock Analysis
GENERAL FINANCE (GFN): Free Stock Analysis
XOOM CORP (XOOM): Free Stock Analysis Report
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