CME Group Inc.
) reported second-quarter 2013 operating earnings per share of 93
cents. The results were modestly higher than the Zacks Consensus
Estimate of 90 cents but significantly exceeded the year-ago
quarter figure of 74 cents. Consequently, net income jumped 27.1%
year over year to $311.2 million.
CME Group's total revenue edged up 2.5% year over year to
$816.1 million and topped the Zacks Consensus Estimate of $806
million. The year-over-year growth was primarily due to a
accretion in clearing and transaction fees due to incremental
volumes within interest rate, foreign exchange and metal
commodity products. However, a lower average rate per contract
along with deteriorated revenues from market data and information
services along with access and communication fees partially
offset the upside.
CME Group's average daily volume jumped 16% year over year to
14.3 million contracts in the reported quarter, primarily driven
by growth in Asian and Latin American markets. The radical
improvement came across asset classes except agricultural
products. However, total average rate per contract reduced 7.9%
from the year-ago quarter to 74.8 cents. Nonetheless, the volumes
constitute mostly of lower-priced products across asset-class
that require higher volume discounts.
clearing and transaction fees
increased 7.6% year over year to $692.5 million, while accounting
for about 85% of the total revenue. However, revenues from
and information services
decelerated 28.3% year over year to $79.4 million. Additionally,
access and communication fee
decreased 8.8% year over year to $20.6 million, while
revenue surged 24.9% year over year to $23.6 million.
Meanwhile, total operating expenses declined 5.6% year over
year to $308.3 million. Operating income rose 8.2% year over year
to $507.8 million, whereas operating margin rebounded to its
historical highs of above 60% to 62.2% from 59.0% in the year-ago
Meanwhile, CME Group recorded a non-operating expense of $0.3
million against an income of $41.5 million in the year-ago
quarter, primarily owing to higher interest and borrowing costs
in the reported quarter and higher non-operating income in the
As of Jun 30, 2013, CME Group had $2.03 billion of cash and
marketable securities, higher than $1.66 billion at 2012-end,
while long-term debt stood at $1.36 billion, lower than the $2.11
billion at 2012-end.
As of Jun 31, 2013, CME Group had total assets of $46.88
billion (up from $38.86 billion as of Dec 31, 2012), while total
equity stood at $21.85 billion (up from $21.42 billion as of Dec
31, 2012). The company did not repurchase shares during the
On May 23, 2013, the board of CME Group declared a regular
dividend of 45 cents per share for the second quarter, which was
paid on Jun 25, 2013 to shareholders of record Jun 10, 2013.
Apart from CME Group,
MarketAxess Holdings Inc.
) currently carries a Zacks Rank #1 (Strong Buy) in the exchange
industry. Other outperformers in the financial sector include
CIT Group Inc.
), both of which carry a Zacks Rank #2 (Buy).
CIT GROUP (CIT): Free Stock Analysis Report
CME GROUP INC (CME): Free Stock Analysis
MOODYS CORP (MCO): Free Stock Analysis Report
MARKETAXESS HLD (MKTX): Free Stock Analysis
To read this article on Zacks.com click here.