CME Q3 revenue rises double digits, beats analyst estimates

By Reuters News


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


Reuters Recommended Reads

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  • Oct 20 - Deutsche Boerse Q3 net profit rises 18%, raises outlook

  • Oct 19 - Tradeweb bolsters US corporate bond offerings with nearly $2 billion Trumid deal


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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