Exchange Operator CME's Results Hit By Tame Trading -- WSJ
02 May 2019 - 5:02PM
Dow Jones News
By Robert Barba
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (May 2, 2019).
CME Group Inc. reported a 17% decline in net income in the first
quarter, as placid markets led to less trading at the U.S. futures
giant.
The derivatives marketplace reported net income of $497 million,
or $1.39 a share, in the quarter, compared with $599 million, or
$1.76 a share, a year earlier. The company, led by Chairman and CEO
Terrence Duffy, reported adjusted earnings of $1.62 a share, down
from $1.86.
Analysts polled by FactSet expected earnings of $1.46 a share
and adjusted earnings of $1.60 a share. Revenue totaled $1.18
billion, up from $1.10 billion a year earlier. Analysts expected
sales of $1.19 billion. Shares fell about 2%.
Volatility tends to help CME by encouraging more trading in its
futures markets. Markets were relatively subdued in the first
quarter of this year, while turbulence in the same quarter of 2018
powered CME to what was then record quarterly revenue.
Last year, the Chicago-based exchange operator that handles
contracts on a range of commodities and financial instruments,
completed a deal to buy NEX, an electronic foreign currency and
fixed-income trading platform
CME's clearing and transaction fees, the company's largest
source of revenue, slipped 2% to $953 million during the quarter,
while its market data and information services had revenue of $130
million, up nearly 37%.
Total expenses rose 49% to $549 million, largely driven by
higher compensation and benefits costs.
--Alexander Osipovich contributed to this article.
Write to Robert Barba at Robert.Barba@wsj.com
Corrections & Amplifications Turbulent markets in the first
quarter of 2018 powered CME to what was then record revenue. An
earlier version of this article incorrectly stated that the
turbulence and the record revenue had taken place in the first
quarter of 2019. (May 1, 2019)
(END) Dow Jones Newswires
May 02, 2019 02:47 ET (06:47 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
CME (NASDAQ:CME)
Historical Stock Chart
From Jun 2024 to Jul 2024
CME (NASDAQ:CME)
Historical Stock Chart
From Jul 2023 to Jul 2024