Jeffries Lower EPS Outlook on Financials Sector

n a report released Monday morning by Jeffries, Equity analyst Daniel Fannon emphasizes that 4Q13 estimates for Financials sector have been lowered, citing volumes not meeting expectations. The report notes, "Daily volume averages were generally below our expectations during the quarter, the one notable exception being CME, which benefited from interest rate volatility. 2014 has started off at its normal seasonally slow ramp, with natural gas volumes exhibiting notable strength." CME Group CME 2014 EPS was increased from $3.56 to $3.62, while 4Q13 EPS lowered from $0.69 to $0.68 with an earnings release date is Tuesday, Feb 4th. The report notes, "Overall, open interest continues to build and is now up approx. 20% y/y to 85M. OTC clearing volumes, while still a modest contributor, continue to grow and will likely come in at approx. $15M, about 15% higher q/q. Looking ahead, uncertainty around the timing of QE tapering should help provide near-term support for volumes." GFI Group GFIG 2014 EPS was revised to $0.19 from $0.35 and 4Q13 EPS change to -$0.03 from $0.05 with an estimated earnings release date during the week of February 4th. The analyst notes, "We are reducing our estimates for GFIG broadly given the continued tepid outlook for trading volumes. While the company likely experienced a bit of a pickup from certain volatility within the energy and credit segments, the overall backdrop remains lackluster" EPS for Intercontinental Exchange ICE 4Q13 shifted down to $1.99 from $2.13 with a earnings release date of Tuesday, Feb 11th. The analyst defends the movement, "Looking past the noise and at fundamentals, we see two divergent trends: ICE's legacy business appears to be rebounding, while the acquired NYX businesses continue to struggle." CBOE Holdings CBOE remained consistent with a 4Q13 EPS of $0.50 with an earnings release date of Friday, Feb 7th. NASDAQ OMEX Group NDAQ also remained the same with 4Q13 EPS of $0.67 with an earnings release date of Wednesday, Feb 5th.