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Canada's TMX Group Q3 revenue beats estimates driven by double-digit growth in TMX VettaFi

By Reuters News


Overview

  • Canada market operator's Q3 revenue rose 17%, beating analyst expectations

  • Adjusted diluted EPS for Q3 up 21%, beating analyst expectations

  • Reported diluted EPS fell 12% due to foreign exchange losses


Outlook

  • Company did not provide specific financial guidance for upcoming quarters or full year in its press release


Result Drivers

  • ORGANIC GROWTH - Co said organic revenue rose 11% year-over-year, driven by double-digit growth in TMX VettaFi, Derivatives Trading and Clearing, and Capital Formation

  • ACQUISITIONS - Co said recent acquisitions including TMX Australia Exchange and RAFI Indices contributed $26.4 mln to Q3 revenue

  • EXPENSES - Co said operating expenses rose due to higher headcount, incentive plan costs, IT spending, and costs tied to BOX Exchange LLC


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

C$491.10 mln

C$476.13 mln (4 Analysts)

Q3 Adjusted EPS

Beat

C$0.63

C$0.58 (8 Analysts)

Q3 EPS

C$0.38

Q3 Operating Expenses

C$305.70 mln

Q3 Operating Income

C$185.40 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the financial & commodity market operators & service providers peer group is "buy"

  • Wall Street's median 12-month price target for TMX Group Ltd is C$67.00, about 17.4% above its October 29 closing price of C$57.06

  • The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 18 three months ago


Reuters Recommended Reads

  • Oct 29 - Canada's Aecon Q3 profit beats estimates; posts record backlog

  • Oct 27 - Credit bureau TransUnion Q3 revenue meets on segment growth

  • Oct 27 - AllianceBernstein Q3 adjusted EPS beats estimates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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