Financial derivatives exchange CME Group (NASDAQ: CME) will be reporting earnings this Wednesday before market open. Here’s what you need to know.
CME Group met analysts’ revenue expectations last quarter, reporting revenues of $1.69 billion, up 10.5% year on year. It was a mixed quarter for the company, with .
Is CME Group a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting CME Group’s revenue to decline 2.9% year on year to $1.54 billion, a reversal from the 18.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.63 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. CME Group has missed Wall Street’s revenue estimates twice over the last two years.
Looking at CME Group’s peers in the capital markets segment, some have already reported their Q3 results, giving us a hint as to what we can expect. FactSet delivered year-on-year revenue growth of 6.2%, beating analysts’ expectations by 0.6%, and Morgan Stanley reported revenues up 18.5%, topping estimates by 9.2%. FactSet traded down 14% following the results while Morgan Stanley was up 3%.
Read our full analysis of FactSet’s results here and Morgan Stanley’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the capital markets stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.9% on average over the last month. CME Group is up 2.4% during the same time and is heading into earnings with an average analyst price target of $282.56 (compared to the current share price of $267.31).
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