CME Q3 revenue rises double digits, beats analyst estimates
Overview
US derivatives marketplace's Q3 revenue grew double digits, beating analyst expectations
Company returned nearly $1 bln to shareholders via dividends and share repurchases
Q3 trading activity reached record average daily volume
Outlook
Company expects continued market volatility to drive client risk management activity
CME Group sees ongoing demand for risk management and capital efficiency solutions
Company highlights progress in cloud migration to expand client market access
Result Drivers
RECORD TRADING VOLUMES - Co said heightened market uncertainty drove clients to CME Group, resulting in record Q3 average daily volume and double-digit volume growth across all asset classes
MARKET DATA REVENUE - Market data revenue rose 20% to a record $243 mln in Q3, contributing to overall revenue growth
NEW PRODUCTS AND TECHNOLOGY - Co cited new product launches and progress in cloud migration as factors expanding client access and supporting results
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $1.74 bln | $1.71 bln (13 Analysts) |
Q3 EPS | $2.89 | ||
Q3 Net Income | $1.04 bln | ||
Q3 EBIT | $1.14 bln | ||
Q3 Pretax Profit | $1.35 bln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 9 "strong buy" or "buy", 6 "hold" and 3 "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 CME Group Inc. is $300.00, about 1.6% above its October 20 closing price of $295.31
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 18 three months ago
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(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.)