CME Group Inc . CME reported third-quarter 2016 adjusted earnings per share of $1.05, which surpassed the Zacks Consensus Estimate of $1.04 by a penny. However, the bottom line decreased year over year by a cent.
Including one-time items, net income of $1.39 per share for the quarter increased 31% year over year.
The company witnessed continued expansion of volume from outside the United States - particularly in Asia - in both energy and metals. The proportion of average daily options volume traded electronically hit an all-time high in the reported quarter.
Behind the Headlines
CME Group's total revenue dipped 1% year over year to $842 million. A decrease of 1.5% in clearing and transaction fees was largely responsible for the decline. Revenues missed the Zacks Consensus Estimate of $851 million.
CME Group's average daily volume remained flat year over year at 14.3 million contracts.
The company witnessed 22% year-over-year growth in metals average daily volume and 17% increase in energy. In addition, total average rate per contract of 75 cents was lower than 78.2 cents in the year-ago quarter.
Total expenses decreased 5.2% year over year to $316.4 million during the reported quarter. Operating income improved 1.7% to $525.3 million.
As of Sep 30, 2016, CME Group had $1.5 billion in cash and marketable securities, down 16.7% from $1.8 billion at year-end 2015. Long-term debt was $2.2 billion, up 0.04% from the 2015-end level.
As of Sep 30, 2016, the company had total assets worth $63.3 billion, down 6.1% from $67.4 billion as of Dec 31, 2015.
During the quarter, the company paid dividends worth $203 million.
CME GROUP INC Price, Consensus and EPS Surprise
Zacks Rank & Performance of Other Stocks
Currently, CME Group carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Among the other players from the finance sector that have reported their third-quarter earnings so far, the bottom line at MarketAxess Holdings Inc. MKTX and The Travelers Companies Inc. TRV beat their respective Zacks Consensus Estimate, while Nasdaq Inc. NDAQ posted in-line earnings.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.