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The Chicago, Illinois-based CME Group Inc. (CME) operates contract markets for trading futures and options on futures contracts worldwide and offers a broad range of products covering major asset classes based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, and metals. With a market cap of $80.8 billion, the company is expected to announce its fiscal Q3 earnings results before the market opens on Wednesday, Oct. 23.
Ahead of this event, analysts expect the financial company to report a profit of $2.55 per share, up 13.3% from $2.25 per share in the year-ago quarter. Moreover, the company has consistently surpassed Wall Street's earnings estimates in the last four quarters. In Q2, the company reported an EPS of $2.56, which topped the consensus estimates by nearly 2%.
For fiscal 2024, analysts expect CME to report an EPS of $10.04, up 7.5% from $9.34 in fiscal 2023. However, EPS is expected to decline marginally year-over-year to $9.97 in fiscal 2025.
Shares of CME have gained 6.6% on a YTD basis, lagging behind both the S&P 500 Index's ($SPX) 20.6% surge and the Financial Select Sector SPDR Fund’s (XLF) 21.4% return over the same period.
CME reported its Q2 results on Jul. 24. Its adjusted earnings of $2.56 per share and record revenue of $1.5 billion in the quarter surpassed the consensus estimates. The better-than-expected performance was primarily driven by growth in volume and open interest in all its asset classes, with overall average daily volume (ADV) up 16% in commodities and 13% in financial markets. However, shares of CME declined marginally on the release date but rose 1.1% in the following trading session.
Analysts' consensus view on CME Group’s stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 17 analysts covering the stock, seven recommend "Strong Buy," seven suggest "Hold," one indicates “Moderate Sell,” and two recommend “Strong Sell.” This configuration has remained fairly stable over the past three months.
As of writing, the stock is trading above its mean price target of $217.53.
On the date of publication, Sohini Mondal 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.
