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CME Group’s Q4 Earnings Miss; Will Boost Dividend (CME)

Posted: 2/3/2011 9:18:00 AM
Referenced Stocks: CME

Futures exchange operator CME Group Inc. ( CME ) on Thursday said its fourth quarter profit fell more than 3% from last year, missing analyst expectations, but noted it would boost its dividend for 2011.

The Chicago-based company reported fourth quarter net income of $196 million, or $2.93 per share, compared with $203 million, or $3.04 per share, in the year-ago period. Excluding one-time items, adjusted profit was $3.77 per share.

On average, Wall Street analysts expected a higher profit of $3.82 per share.

The company noted that it plans to boost its dividend payout for 2011 to around 35% of prior year cash earnings, up from about 30%. CME said that change will result in about a 20% increase in its current quarterly payout of $1.15 per share.

CME shares fell $7.54, or -2.4%, in premarket trading Thursday.

The Bottom Line
Shares of CME Group ( CME ) have a 1.46% dividend yield, based on last night's closing stock price of $315.14. The stock has technical support in the $303-$305 price area. If the shares can firm up, we see overhead resistance around the $320-$326 price levels.

CME Group Inc. ( CME ) is not recommended at this time, holding a DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .