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CME Group Beats on Q4 Earnings & Revenues; Ups Dividend

CME Group Inc.CME reported fourth-quarter 2015 adjusted earnings per share of 92 cents, beating the Zacks Consensus Estimate by 2 cents. The bottom line however decreased 3.2% from the year-ago figure.

CME Group Inc. (CME) Street EPS & Surprise Percent - Last 5 Quarters | FindTheCompany

The decline was largely attributable to lower revenues that offset the impact of lower expenses.

Including one-time items, net income of 86 per share for the quarter decreased 5.5% year over year.

CME Group's total revenue decreased 3.2% year over year to $813.8 million but surpassed the Zacks Consensus Estimate of $807 million. The decrease was primarily due to a 4.8% decline in clearing and transaction fees. However, 10.1% higher market data and information services revenues, limited the downside.

The company's average daily volume decreased 11.2% year over year to 13.2 million contracts in the quarter. However, total average rate per contract of 78.9 cents was higher than 73.1 cents.

Total expenses declined 7% year over year to $343.9 million during the reported quarter.

Operating income fell a marginal 0.3% to $469.9 million.

Full-Year Highlights

CME Group's operating net income came in at $3.86 per share, beating the Zacks Consensus Estimate by 2 cents. Earnings improved 15% over 2014.

Net earnings of $3.69 per share increased 105% over 2014.

Revenues of $3.3 billion improved 7% over 2014.

Total average daily volumes in 2015 were a record 14.0 million contracts, fueled by stellar performance in energy, agricultural commodities, total options and electronic options.

Financial Update

As of Dec 31, 2015, CME Group had $1.77 billion of cash and marketable securities, higher than $1.44 billion at year-end 2014. Meanwhile, long-term debt was $2.24 billion, up from $2.11 billion at the end of 2014.

As of Dec 31, 2015, the company had total assets worth $67.3 billion, down from $72.24 billion as of Dec 31, 2014.

Dividend Update

Recently, the board of directors of CME Group approved a 20% increase in quarterly dividends. The payout comes to 60 cents per share.

During 2015, the company announced $1.6 billion in dividends, including the annual variable dividend of $977 million.

Zacks Rank & Performance of Other Stocks in Securities Exchange

Currently, CME Group carries a Zacks Rank #3 (Hold). Among the other stocks in the securities exchange space, Nasdaq, Inc. NDAQ earnings were in line with the Zacks Consensus Estimate while earnings at MarketAxess Holdings Inc. MKTX and CBOE Holdings, Inc. CBOE beat the same in the fourth quarter.

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CME GROUP INC (CME): Free Stock Analysis Report

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MARKETAXESS HLD (MKTX): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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