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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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.