The 10-second takeaway
For the quarter ended March 31 (Q1), CME Group met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted and GAAP earnings per share dropped significantly.
Gross margins improved, operating margins shrank, net margins shrank.
CME Group reported revenue of $774.6 million. The 14 analysts polled by S&P Capital IQ anticipated revenue of $778.9 million on the same basis. GAAP reported sales were 6.9% lower than the prior-year quarter's $831.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $4.02. The 18 earnings estimates compiled by S&P Capital IQ averaged $4.03 per share. GAAP EPS of $4.02 for Q1 were 41% lower than the prior-year quarter's $6.81 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 97.3%, 1,480 basis points better than the prior-year quarter. Operating margin was 58.2%, 480 basis points worse than the prior-year quarter. Net margin was 34.4%, 2,050 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $836.7 million. On the bottom line, the average EPS estimate is $4.48.
Next year's average estimate for revenue is $3.31 billion. The average EPS estimate is $17.74.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 752 members out of 801 rating the stock outperform, and 49 members rating it underperform. Among 206 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 193 give CME Group a green thumbs-up, and 13 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on CME Group is outperform, with an average price target of $305.61.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of CME Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.