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CME Group (CME) Q3 Earnings Top, Revenues Lag Estimates

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.

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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.

Financial Update

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.

Dividend Update

During the quarter, the company paid dividends worth $203 million.

CME GROUP INC Price, Consensus and EPS Surprise

CME GROUP INC Price, Consensus and EPS Surprise | CME GROUP INC Quote

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.

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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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