CME Group (Nasdaq: CME) is expected to report Q3 earnings on Oct. 25. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict CME Group's revenues will drop -21.4% and EPS will contract -26.3%.
The average estimate for revenue is $687.2 million. On the bottom line, the average EPS estimate is $0.70.
Revenue details
Last quarter, CME Group reported revenue of $795.9 million. GAAP reported sales were 5.1% lower than the prior-year quarter's $838.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
Last quarter, non-GAAP EPS came in at $0.89. GAAP EPS of $0.74 for Q2 were 16% lower than the prior-year quarter's $0.88 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Recent performance
For the preceding quarter, gross margin was 97.1%, 70 basis points worse than the prior-year quarter. Operating margin was 59.0%, 480 basis points worse than the prior-year quarter. Net margin was 30.8%, 420 basis points worse than the prior-year quarter.
Looking ahead
The full year's average estimate for revenue is $3.00 billion. The average EPS estimate is $3.13.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 762 members out of 812 rating the stock outperform, and 50 members rating it underperform. Among 216 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 203 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 $59.04.
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