CME Group Set to Report Q4 Earnings; Analysts Cautious

CME Group, valued at $83.9B, is poised to announce Q4 results. Analysts expect a non-GAAP EPS of $2.45, indicating a modest growth. However, despite a 14.7% stock gain, there are concerns as consensus remains a 'Hold' rating among analysts.

Date: 21-01-2025

AI Rating: 6

Earnings Per Share (EPS): Analysts forecast a non-GAAP EPS of $2.45 for Q4, representing a 3.4% rise from the previous year's $2.37. The adjusted EPS for the full fiscal 2024 is projected at $10.18, reflecting a nearly 9% increase compared to fiscal 2023's $9.34. This indicates that earnings are expected to show positive growth in the upcoming quarters.

Net Income: The report highlights that CME demonstrated robust discipline in managing expenses, leading to a significant year-over-year growth in GAAP-based net income, which reached $901.3 million for Q3 2024. This 21.7% increase year-over-year is a positive indicator of overall profitability.

Revenue Growth: CME's total revenues accelerated by 18.4% year-over-year to $1.6 billion in Q3 2024, which outperformed Wall Street expectations. This robust revenue performance, driven mainly by higher clearing and transaction fees, indicates strong operational momentum.

Consensus Rating and Price Target: Despite the positive performance metrics, analysts exhibit caution with a consensus 'Hold' rating. Among the analysts, six rated it as 'Strong Buy' and nine as 'Hold,' with a modest mean price target of $244.71, representing a 5.2% upside potential. This mixed outlook suggests a degree of uncertainty regarding future stock performance.

Stocks: CME