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CME Q1 Earnings Beat Estimates on Higher Trading Volume, Revenues Lag
CME GroupCME Group(US:CME) ZACKSยท2025-04-23 16:46

Core Insights - CME Group reported first-quarter 2025 operating income of $2.80 per share, exceeding the Zacks Consensus Estimate by 0.4% and showing a 12% year-over-year improvement [1] - The quarterly results were driven by increased revenues from higher clearing and transaction fees, as well as market data and information services fees, with increased volatility contributing to higher volumes [1] Performance in Detail - CME Group's revenues reached $1.6 billion, marking a 10.4% year-over-year increase, primarily due to higher clearing and transaction fees (up 10.6%), market data and information services (up 10.9%), and other revenues (up 6.7%) [2] - However, the top line fell short of the Zacks Consensus Estimate by 0.5% [2] Expense and Income Analysis - Total expenses rose by 1.1% year over year to $534.3 million, driven by higher compensation and benefits, technology costs, and licensing fees, exceeding the estimate of $492.4 million [3] - Operating income increased by 15.5% from the prior-year quarter to $1.1 billion, surpassing the estimate of $1 billion [3] Volume and Market Activity - Average daily volume (ADV) reached a record 29.8 million contracts, with commodities growing by 19% and financials increasing by 12% [4] - ADV outside the U.S. also hit a new high of 8.8 million contracts, up 19% year over year, with the total average rate per contract at 68.6 cents [4] Financial Update - As of March 31, 2025, CME Group had $1.5 billion in cash and marketable securities, a decrease of 49.5% from the end of 2024 [5] - Long-term debt stood at $3.4 billion, an increase of 27.7% from the end of 2024 [5] - Shareholders' equity was valued at $26.5 billion, reflecting a 2% increase from the end of 2024 [5] Capital Deployment - CME Group declared dividends totaling $2.6 billion in the first quarter of 2025, having returned over $28.6 billion to shareholders since the implementation of its variable dividend policy in early 2012 [6] Zacks Rank - CME currently holds a Zacks Rank 1 (Strong Buy) [7]