CME Group's 2Q profit rose, beating expectations

CME Group Inc. said today its second-quarter profit jumped 10% due to the company's expanding operations. The exchange operator's profit beat analysts' expectations.
JUL 23, 2009
By  Bloomberg
CME Group Inc. said today its second-quarter profit jumped 10 percent due to the company's expanding operations. The exchange operator's profit beat analysts' expectations. The company's second-quarter results include operations at the New York Mercantile Exchange, which were not included in the year-ago figures. CME Group acquired the New York Mercantile Exchange during the third quarter of 2008. Net income for the quarter ended June 30, rose to $222 million, or $3.33 per share, from $201 million, or $3.67 per share, during the same quarter last year. Earnings per share declined despite an increase in profit because CME Group had more shares outstanding during the most recent quarter. When the New York Mercantile Exchange's results are included in the year-ago figures, CME Group and the New York Mercantile Exchange's combined profits actually fell 15 percent from the year-ago period. Analysts polled by Thomson Reuters, on average, forecast earnings of $3.23 per share for the quarter on revenue of $651.5 million. CME Group's revenue increased 15 percent, but still fell short of expectations. Revenue totaled $648 million during the second quarter, compared with $563 million during the year-ago period. Revenue increased primarily due to growth in clearing and transaction fees as the company operated more exchanges during the most recent quarter. CME Group's clearing and transaction fee revenue increased 17 percent to $536.8 million during the second quarter, from $458.5 million during the same quarter in 2008. Factoring in the New York Mercantile Exchange's results from the year-ago period, revenue declined 14 percent amid slowing trading volume. CME average daily trading volume fell 21 percent to about 8.8 million trades per day during the second quarter. New York Mercantile Exchange volume dipped 8 percent to about 1.7 million trades per day. Despite the year-over-year decline in trading, CME Group said it started to see a recovery in trading at the end of the second quarter as markets have begun to strengthen. "As the economy showed signs of stability, we saw increased volumes in June, particularly in interest rates, foreign exchange and agricultural markets," Terry Duffy, CME Group's executive chairman, said in a statement. Shares of CME Group rose $1.05 to $273.09 in premarket trading Thursday. Shares closed Wednesday at $272.70.

Latest News

'Bogged down' advisors just want to have fun (again)
'Bogged down' advisors just want to have fun (again)

Jim Cahn, of Wealth Enhancement Group, lifts the lid on his firm's partnership model, his views on RIA M&A, and the widely slept-on reason why advisors are merging into larger organizations.

Vestwell unveils new emergency savings account offering
Vestwell unveils new emergency savings account offering

The fintech firm is cementing its status in the workplace savings space with its latest ESA offering, which employers can integrate into their existing benefits package.

'Money Mimosas' and other ways to show your Valentine financial love
'Money Mimosas' and other ways to show your Valentine financial love

Wealth managers offer unique ideas for couples to grow closer emotionally and financially.

Limra research finds financial confidence on the rise among Black American workers
Limra research finds financial confidence on the rise among Black American workers

Survey findings suggest increased sense of financial security and more optimistic 2025 outlook, while highlighting employers' role in ensuring retirement readiness.

DOGE efforts sideswipe muni bonds backed by federal lease payments
DOGE efforts sideswipe muni bonds backed by federal lease payments

Falling prices for some securities within the $4 trillion state and local government debt market spotlight how the push to shrink spending is sending shockwaves across the US.

SPONSORED Record growth: Interval funds emerge as key players in alternative investments

Blue Vault Alts Summit highlights the role of liquidity-focused funds in reshaping advisor strategies

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.