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 shrank. Non-GAAP earnings per share dropped. GAAP earnings per share dropped.
Margins dropped across the board.
CME Group logged revenue of $718.6 million. The 16 analysts polled by S&P Capital IQ expected to see a top line of $712.3 million on the same basis. GAAP reported sales were 7.2% lower than the prior-year quarter's $774.6 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 $0.73. The 18 earnings estimates compiled by S&P Capital IQ anticipated $0.73 per share. Non-GAAP EPS of $0.73 for Q1 were 8.8% lower than the prior-year quarter's $0.80 per share. GAAP EPS of $0.71 for Q1 were 11% lower than the prior-year quarter's $0.80 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 97.0%, 30 basis points worse than the prior-year quarter. Operating margin was 56.4%, 180 basis points worse than the prior-year quarter. Net margin was 32.8%, 160 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $756.9 million. On the bottom line, the average EPS estimate is $0.81.
Next year's average estimate for revenue is $2.95 billion. The average EPS estimate is $3.12.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 755 members out of 805 rating the stock outperform, and 50 members rating it underperform. Among 204 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 194 give CME Group a green thumbs-up, and 10 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 $59.28.
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