Financial derivatives exchange CME Group (NASDAQ: CME) will be reporting earnings this Wednesday before market hours. Here’s what to expect.
CME Group met analysts’ revenue expectations last quarter, reporting revenues of $1.65 billion, up 8.1% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ EPS estimates.
Is CME Group a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting CME Group’s revenue to grow 16.2% year on year, improving from the 10.4% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have mixed opinions about the business, with revenue estimates seeing both upward and downward revisions over the last 30 days. CME Group has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at CME Group’s peers in the capital markets segment, some have already reported their Q1 results, giving us a hint as to what we can expect. FactSet delivered year-on-year revenue growth of 7.1%, beating analysts’ expectations by 1.1%, and BNY reported revenues up 13.8%, topping estimates by 4.3%. FactSet traded up 9.9% following the results while BNY was also up 2.4%.
Read our full analysis of FactSet’s results here and BNY’s results here.
There has been positive sentiment among investors in the capital markets segment, with share prices up 12.4% on average over the last month. CME Group is down 6.1% during the same time and is heading into earnings with an average analyst price target of $312.93 (compared to the current share price of $287.80).
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