Can CME Group Retain its Beat Streak This Earnings Season?

Core Viewpoint - CME Group Inc. is expected to report strong third-quarter 2024 earnings, with a consensus estimate indicating a significant increase in both revenues and earnings per share compared to the previous year [1][3]. Financial Performance - The Zacks Consensus Estimate for revenues is $1.6 billion, reflecting a 15.6% increase from the year-ago figure [2]. - Clearing and transaction fees are projected to be $1.2 billion, representing a 9.3% increase year-over-year, driven by higher trading volumes [2]. - Average daily volume reached a record of 28.3 million contracts in the third quarter, up 27% year-over-year [2]. - Market data and information services revenues are expected to be $180 million, indicating a 7.4% increase from the previous year [2]. Expense Outlook - Anticipated expenses for the quarter are $468.1 million, which is an 11.6% increase from the year-ago figure, attributed to higher compensation, technology costs, and amortization of intangibles [3]. Earnings Expectations - The consensus estimate for earnings per share is $2.60, marking a 15.6% increase from the same quarter last year [3]. - CME Group has an Earnings ESP of +1.93%, with the Most Accurate Estimate at $2.65, suggesting a strong likelihood of an earnings beat [4]. Market Position - CME Group holds a Zacks Rank of 3 (Hold), indicating a stable outlook in the current market environment [4].