CME Group Earnings Preview: Analysts Expect Higher EPS, Revenue

CME Group (NASDAQ: CME) announces its next round of earnings this Tuesday, November 1, 2011. Here's Benzinga's advanced look at CME Group's third quarter earnings report.

Earnings and Revenue:

Based on estimates, investors are readying for a positive EPS reading of $4.64/share and revenues of $872.3 million. CME Group's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of $3.66/share on revenues of $733.4 million. We'll know on Tuesday whether the company has managed the estimated 26.8% increase in EPS and 18.9% rise in revenues on a year-over-year basis.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

As of October 26, 2011, CME Group's current share price was $263.43. Since January 1st, shares have declined 16.9%. For a full 12 months, the return has declined by 4.9%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

• Long-term shareholders are already wary of 12-month losses prior to the announcement

Average Stock Rating:

The average rating by analysts is a Moderate Buy. Over the past three months this rating's strength has declined slightly.

Competitors:

Wondering how CME Group compares to rivals in the same sector? Here are a few of the company's peers.

• CBOE Holdings (NASDAQ: CBOE): Hold with a $0.36 recent quarter EPS
• IntercontinentalExchange (NYSE: ICE): Moderate Buy with a $1.69 recent quarter EPS
• Nasdaq Stock Market (NASDAQ: NDAQ): Moderate Buy with a $0.62 recent quarter EPS
• MarketAxess Holdings (MKTX): Moderate Buy with a $0.30 recent quarter EPS

The securities exchanges company's industry has seen price/earnings growth of 1.1% during the current fiscal year.

Finally, a description of the company's main areas of operation: CME Group provides risk management and investment services to customers, including professional traders, financial institutions, investors, corporations, manufacturers, and governments.

Take Action:

Now that you have reviewed all the numbers, be ready to move if the upcoming CME Group earnings report has any surprises. Also, come back to Benzinga after the announcement for a full recap and a guide to your next steps.

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