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CME Group Inc. (CME), headquartered in Chicago, Illinois, operates contract markets for the trading of futures and options on futures contracts. Valued at $78.7 billion by market cap, it offers futures and options products based on interest rates, equity indexes, foreign exchange, agricultural commodities, energy, and metals, and more. It facilitates trading on its trading floors, electronic platform, and through privately negotiated transactions that it clears. The leading derivatives marketplace is expected to announce its fiscal second-quarter earnings for 2025 before the market opens on Wednesday, Jul. 23.
Ahead of the event, analysts expect CME to report a profit of $2.98 per share on a diluted basis, up 16.4% from $2.56 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect CME to report EPS of $11.22, up 9.4% from $10.26 in fiscal 2024. Its EPS is expected to rise 3.1% year over year to $11.57 in fiscal 2026.
CME stock has outperformed the S&P 500 Index’s ($SPX) 13.4% gains over the past 52 weeks, with shares up 41.1% during this period. Similarly, it outperformed the Financial Select Sector SPDR Fund’s (XLF) 28% gains over the same time frame.
CME's strong performance is driven by its diverse product offerings, global presence, and focus on innovation through partnerships like Alphabet Inc.’s (GOOG) Google Cloud. Record trading volumes and revenues are fueled by robust trading across all asset classes, with a significant increase in interest rate derivatives. The company's efforts in global expansion and market penetration have also been key to its success.
On Apr. 23, CME shares closed down more than 1% after reporting its Q1 results. Its adjusted EPS of $2.80 exceeded Wall Street expectations of $2.79. The company’s revenue was $1.6 billion, missing Wall Street forecasts of $1.7 billion.
Analysts’ consensus opinion on CME stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 19 analysts covering the stock, six advise a “Strong Buy” rating, two suggest a “Moderate Buy,” eight give a “Hold,” one recommends a “Moderate Sell,” and two advocate a “Strong Sell.” While CME currently trades above its mean price target of 275.06, the Street-high price target of $308 suggests an upside potential of 11.3%.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
