CME Group Inc Class A
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$685.00 | Rwct | Bvynxmdy |
CME Group Earnings: Strong Trading Volume Across All Asset Classes Drives Double-Digit EPS Growth
Wide-moat-rated CME Group reported strong second-quarter earnings as the company enjoyed high trading volume growth across all asset classes. Revenue increased 12.7% from last year and 3% from last quarter to $1.53 billion. Meanwhile, diluted earnings per share increased 13% from last year to $2.42, though the company did benefit from one extra trading day in the quarter. As we incorporate these results, we do not expect to materially alter our $225 fair value estimate. We see the company as modestly undervalued at the current price, though we note that once interest rates begin to decline the firm will face headwinds on earnings growth.