CME Group Inc. (NASDAQ:CME) reported third-quarter 2016 adjusted earnings per share of $1.05, which surpassed the Zacks Consensus Estimate of $1.04 by a penny. However, the bottom line decreased year over year by a cent.
Including one-time items, net income of $1.39 per share for the quarter increased 31% year over year.
The company witnessed continued expansion of volume from outside the United States – particularly in Asia – in both energy and metals. The proportion of average daily options volume traded electronically hit an all-time high in the reported quarter.
Behind the Headlines
CME Group’s total revenue dipped 1% year over year to $842 million. A decrease of 1.5% in clearing and transaction fees was largely responsible for the decline. Revenues missed the Zacks Consensus Estimate of $851 million.
CME Group’s average daily volume remained flat year over year at 14.3 million contracts.
The company witnessed 22% year-over-year growth in metals average daily volume and 17% increase in energy. In addition, total average rate per contract of 75 cents was lower than 78.2 cents in the year-ago quarter.
Total expenses decreased 5.2% year over year to $316.4 million during the reported quarter. Operating income improved 1.7% to $525.3 million.
Financial Update
As of Sep 30, 2016, CME Group had $1.5 billion in cash and marketable securities, down 16.7% from $1.8 billion at year-end 2015. Long-term debt was $2.2 billion, up 0.04% from the 2015-end level.
As of Sep 30, 2016, the company had total assets worth $63.3 billion, down 6.1% from $67.4 billion as of Dec 31, 2015.
Dividend Update
During the quarter, the company paid dividends worth $203 million.
Zacks Rank & Performance of Other Stocks
Currently, CME Group carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among the other players from the finance sector that have reported their third-quarter earnings so far, the bottom line at MarketAxess Holdings Inc. (NASDAQ:MKTX) and The Travelers Companies Inc. (NYSE:TRV) beat their respective Zacks Consensus Estimate, while Nasdaq Inc. (NASDAQ:NDAQ) posted in-line earnings.
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