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CME Group (CME): Will it Surprise This Earnings Season?

CME Group Inc.CME is set to report fourth-quarter 2015 results on Feb 5, before the market opens. Last quarter, the company posted a 4.08% positive earnings surprise. Let's see how things are shaping up for this announcement.

Factors Influencing This Past Quarter

CME Group's top line in the to be reported quarter is likely to have benefitted from its leading market share in the global futures trading and clearing services, as well as expanded futures products in emerging markets. Moreover, revenues are likely to have been favored by non-transaction-related opportunities and OTC offerings.

Average daily volumes may have improved on solid operating leverage.

A solid product mix and post price-adjustments across asset classes should favor transaction fee revenues in the fourth quarter. Efforts to lower expenses aided margin expansion. CME Group expects full-year 2015, adjusted expenses between $1.3 billion and $10 million.

However, interest rate volatility and currency fluctuation may have weighed on its performance. The company also estimates capital expenditure of about $140 million, higher than $138 million reported in 2014.

Earnings Whispers

Our proven model does not conclusively show that CME Group will beat estimates this quarter. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1(Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.

Zacks ESP : CME Group has 0.00% Earnings ESP. This is because both the Most Accurate estimate and the Zacks Consensus Estimate stand at 90 cents per share.

Zacks Rank : CME Group carries a Zacks Rank #3, which increases the predictive power of ESP. However, an ESP of 0.00% makes our surprise prediction difficult.

Stocks to Consider

Here are some companies from the insurance industry that you may want to consider as these have the right combination of elements to post an earnings beat this quarter:

The Hartford Financial Services Group, Inc. HIG , Earnings ESP of +1.02% and a Zacks Rank #2. The company is scheduled to report fourth-quarter earnings results on Feb 4.

PartnerRe Ltd. PRE , Earnings ESP of +9.84% and a Zacks Rank #1. The company is scheduled to report fourth-quarter earnings results on Feb 8.

Assurant Inc. AIZ , Earnings ESP of +1.31% and a Zacks Rank #3.The company is scheduled to report fourth-quarter earnings results on Feb 9.

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ASSURANT INC (AIZ): Free Stock Analysis Report

HARTFORD FIN SV (HIG): Free Stock Analysis Report

PARTNERRE LTD (PRE): Free Stock Analysis Report

CME GROUP INC (CME): 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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