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Headquartered in Chicago, CME Group Inc. (CME) is a globally recognized derivatives marketplace with a market cap of $70.1 billion. The company provides a comprehensive array of benchmark products across major asset classes, including interest rates, equity indexes, foreign exchange, energy, agricultural products, and metals. CME Group is set to announce its Q2 earnings for fiscal 2024 before the markets open on Wednesday, Jul. 24.
Ahead of the event, analysts expect CME Group to report a profit of $2.49 per share, up 8.3% from $2.30 per share in the year-ago quarter. The company has exceeded Wall Street’s EPS estimates in each of the last four quarters.
CME Group achieved record growth in futures and options contracts linked to U.S. Treasuries, alongside increased trading activity in commodity markets in Q1. This performance contributed its EPS to rise 3.3% year over year to $2.50, which surpassed the consensus estimate by 2.5%.
Looking forward, analysts anticipate CME Group to achieve an EPS of $9.74 in fiscal 2024, reflecting a 4.3% increase from $9.34 in fiscal year 2023. For fiscal 2025, its EPS is projected to inch up marginally to $9.81.
CME stock has rallied 6.8% over the past 52 weeks, underperforming the broader S&P 500 Index's ($SPX) 27.8% gains and the Financial Select Sector SPDR Fund’s (XLF) 24.2% returns over the same time frame.
While there is optimism regarding a potential soft landing for inflation, uncertainty surrounding interest rate trajectories continues to concern the world’s largest futures exchange company. CME Group exceeded analyst expectations in Q1 and had its third-highest quarterly Average Daily Volume (ADV) ever of 26.4 million, behind the first quarters of 2020 and 2023, when markets were rocked by the onset of a global pandemic and a regional banking crisis, respectively.
However, the company’s shares declined 1.9% after its earnings release on April 24. The company maintained its full-year expense forecast, disappointing investors expecting lower costs.
CME has a consensus “Moderate Buy” rating overall. Among the 16 analysts covering the stock, seven recommend a "Strong Buy," six suggest a "Hold," and the remaining three analysts advise a "Strong Sell."
Furthermore, the average analyst price target for CME Group is $225.33, indicating a potential upside of 16.4% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
