News

CME Group Inc. CME is slated to report first-quarter 2024 earnings on Apr 24, before market open. CME's earnings beat estimates in each of the trailing four quarters.

Factors to Consider

A diverse product portfolio, increased volatility, as well as a strong market position are likely to have aided CME Group’s performance in the first quarter.

Increases in market data and information services, clearing, transaction fees and other revenues are likely to have aided CME’s top line in the to-be-reported quarter. The Zacks Consensus Estimate for revenues is pegged at $1.5 billion, indicating a rise of 2.2% from the year-ago reported figure.

Clearing and transaction fees are likely to have benefited from higher Energy and Agriculture trading volumes. We expect clearing and transaction fees to be $1.2 billion, indicating a 0.2% increase from the year-ago reported figure.

Market data and information services revenues are likely to have gained from price increases for certain products, a rise in device counts, higher custody fees as well as improvements in co-location and other connectivity fees. We expect the figure to be $166.2 million.

Expenses are likely to have increased in the to-be-reported quarter due to higher compensation and benefits, technology and amortization of purchased intangibles. We anticipate expenses to be $468.1 million in the to-be-reported quarter.

The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $2.44, indicating an increase of 0.8% from the year-ago quarter reported figure.

What the Zacks Model Says

Our proven model does not conclusively predict an earnings beat for CME Group this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) that increases the odds of an earnings beat. This is not the case here, as you will see below.

Earnings ESP: CME Group has an Earnings ESP of -0.03%. This is because the Most Accurate Estimate of $2.43 is pegged lower than the Zacks Consensus Estimate of $2.44. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

CME Group Inc. Price and EPS Surprise

Zacks Rank: CME Group currently carries a Zacks Rank of 3.

Stocks to Consider

Here are some stocks from the finance sector that have the perfect mix of elements to beat on earnings in their upcoming quarterly releases.

Cboe Global Markets CBOE has an Earnings ESP of +0.34% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at $2.03 per share, indicating a year-over-year increase of 6.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.

CBOE’s earnings beat estimates in each of the last four quarters.

Coinbase Global COIN has an Earnings ESP of +36.53% and a Zacks Rank #1 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at 89 cents per share, indicating a year-over-year increase of 493.3%.

COIN’s earnings beat estimates in each of the last four quarters.

MarketAxess MKTX has an Earnings ESP of +0.75% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for first-quarter 2024 earnings is pegged at $1.85 per share, indicating a year-over-year decrease of 5.6%.

MKTX’s earnings beat estimates in three of the last four quarters while missing in one.

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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.