CME Group Inc.
) reported third-quarter 2013 operating earnings per share of 75
cents. Results comfortably surpassed the Zacks Consensus Estimate
of 73 cents and the year-ago quarter figure of 66 cents.
Consequently, operating net income increased 14.8% year over
year to $250.3 million. Including extraordinary items, GAAP net
income stood at $236.7 million or 71 cents a share in the
reported quarter. However, no such items were recorded in
comparable the year-ago period.
CME Group's total revenues climbed 4.6% year over year to
$714.6 million and were almost in line with the Zacks Consensus
Estimate of $714 million. The year-over-year growth resulted
primarily from an accretion in clearing and transaction fees due
to incremental volumes within interest rate, equity, energy,
metal commodity and option products. However, lower average rate
per contract as well as deteriorated revenues from
and information services along with access and communication fees
partially offset the upside.
CME Group's average daily volume jumped 11% year over year to
12.0 million contracts in the reported quarter, primarily driven
by growth across the Asian, U.S, European and Latin American
markets. Particularly, a surge of 31% and 29% was witnessed from
options and interest rate product volumes, respectively. However,
total average rate per contract reduced 7.3% from the year-ago
quarter to 74.8 cents. Nonetheless, the volumes constitute mostly
of lower-priced products across asset-class that require higher
clearing and transaction fees
rose 6.4% year over year to $597.9 million, accounting for about
84% of the total revenues. However, revenues from
and information services
decreased 5.1% year over year to $78.6 million. Additionally,
access and communication fee
decelerated 12.5% year over year to $20.3 million, while
revenues surged 18.7% year over year to $23.6 million.
Meanwhile, total operating expenses inflated 9.4% year over
year to $314.1 million. Consequently, operating income inched up
a mere 1.1% year over year to $400.5 million, deteriorating
operating margin to 56% from 58% in the year-ago quarter.
Meanwhile, CME Group recorded non-operating expenses of $1.6
million against $0.2 million in the year-ago quarter, primarily
owing to higher interest and borrowing costs in the reported
As of Sep 30, 2013, CME Group had $2.13 billion of cash and
marketable securities, higher than $1.66 billion at 2012-end,
while long-term debt stood at $2.1 billion, at par with the
As of Sep 30, 2013, CME Group had total assets of $49.0
billion (up from $38.86 billion as of Dec 31, 2012), while total
equity stood at $22.0 billion (up from $21.42 billion as of Dec
31, 2012). The company did not repurchase shares during the
On Aug 7, 2013, the board of CME Group had declared a regular
dividend of 45 cents per share for the third quarter, which was
paid on Sep 25, 2013 to shareholders of record as on Sep 10,
Other Stocks to Consider
While CME Group carries a Zacks Rank #3 (Hold), outperformers
in the financial sector include
Fleetcor Tech Inc.
), both of which carry a Zacks Rank #1 (Strong Buy).
MarketAxess Holdings Inc.
) is also well-placed in the exchange industry with a favorable
Zacks Rank #2 (Buy).
CME GROUP INC (CME): Free Stock Analysis
FLEETCOR TECH (FLT): Free Stock Analysis
MARKETAXESS HLD (MKTX): Free Stock Analysis
PARTNERRE LTD (PRE): Free Stock Analysis
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