CME Group Inc. CMEis set to report first-quarter 2018 earnings on Apr 26 before the market opens. Notably, the company delivered a positive surprise in all the last four quarters.
Let’s see, what is in store for the company this yet-to-be reported quarter.
Factors to be Considered This Quarter
CME Group is likely to report top-line growth in the soon-to-be-reported quarter, fueled by higher clearing and transaction fees plus access and communication fees.
Moreover, revenues in the first quarter are anticipated to have gained from expansion of futures products in the emerging markets, non-transaction related opportunities, OTC (over the counter) offerings as well as options business. The Zacks Consensus Estimate for the metric is pegged at $1.1 billion, translating into a 20.8% rise on a year-over-year basis.
Also, the company’s efforts to accelerate organic market data growth might have contributed to its top line. The Zacks Consensus Estimate for market data and information services is pegged at $101 million, indicating a 4.1% increase from the year-ago quarter.
For the first quarter of 2018, average daily volumes (ADV) were 19.2 million contracts, having improved 12.1% year over year as the company witnessed higher volumes across all its product lines.
Additionally, the tax cut, which reduced the tax rate to 21% from 35%, will aid the companies’ bottom line, thereby boosting margins directly.
The Zacks Consensus Estimate for earnings is pegged at $1.85 per share, reflecting a rise of 51.6% on a year-over-year basis.
However, the company is likely to witness a rise in expenses in the yet-to-be-reported quarter, mainly due to its investments in several strategic initiatives. Management projects adjusted total operating expenses guidance excluding licensing fees to range between $1.10 billion and $1.11 billion in 2018.