On July 22, CME Group Inc rose 3.16% in pre-market trading to $242.49 per share. The rally was driven by the company's Q2 earnings release, which exceeded Wall Street expectations on both top and bottom lines.
CME Group reported adjusted earnings per share of $2.99, beating the consensus estimate of $2.91, while revenue came in at $1.706 billion versus expectations of $1.685 billion. Net income rose to $1.042 billion for the quarter. Management attributed the strong performance to heightened equity market volatility spurring increased hedging demand, with Q2 average daily volume reaching 29.8 million contracts — the second-highest level on record. June ADV surged 19% year-over-year to a monthly record of 30.6 million contracts.
The earnings beat is particularly notable given that multiple investment banks had recently cut price targets ahead of the report, including JPMorgan to $249, Barclays to $270, UBS to $260, and Goldman Sachs to $243 with a sell rating. The upside surprise triggered a pre-market recovery in the stock.
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