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CME Group (CME) Q4 Earnings Top on Higher Trading Volume
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CME Group (CME - Free Report) reported fourth-quarter 2022 adjusted earnings per share of $1.92, which beat the Zacks Consensus Estimate of $1.90. The bottom line increased 15.7% year over year.
Quarterly results benefited from an increase in trading volumes. Average daily volume increased in four of its six asset classes.
CME Group’s revenues of $1.2 billion increased 5.3% year over year. The year-over-year increase was primarily due to higher clearing and transaction fees (up 3.4% year over year) and market data and information services (up 7.8% year over year). The top line missed the Zacks Consensus Estimate by 0.2%.
Total expenses increased 4.6% year over year to $539.5 million quarter, attributable to higher technology, professional fees and outside services, licensing and other fee agreements and other expenses.
Operating income increased 5.8% from the prior-year quarter to $668.3 million.
ADV was 21.8 million contracts, up 6% year over year.
Full-Year Highlights
Adjusted earnings per share of $7.97 beat the Zacks Consensus Estimate of $7.95. The bottom line increased 19.3% year over year.
CME Group’s revenues of $1.2 billion increased 7% year over year. The top line was almost in line the Zacks Consensus Estimate.
Non-U.S. ADV was a record 6.3 million contracts, up 15% from 2021.
Financial Update
As of Dec 31, 2022, CME Group had $2.8 billion of cash and marketable securities, down 5.2% from 2021 end. As of Dec 31, 2022, long-term debt of $3.4 billion increased 26.9% from 2021 end.
As of Dec 31, 2022, CME had total equity worth $26.9 billion, down 1.9% from 2021 end.
Capital Deployment
CME Group paid out $3 billion in dividends, including an annual variable dividend of $1.6 billion, taking the payout to $20.5 billion since the implementation of the variable dividend policy in early 2012.
On Feb 2, 2023, CME declared first-quarter dividend of $1.10 per share, representing a 10% increase from the prior payout.
Cboe Global Markets, Inc. (CBOE - Free Report) reported fourth-quarter 2022 adjusted earnings of $1.80 per share, which outpaced the Zacks Consensus Estimate by 1.7%. The bottom line increased 5.8% year over year.
Total adjusted revenues of CBOE Global amounted to $457.1 million for the fourth quarter, which improved 17% year over year on the back of growth in derivatives markets and data and access solutions. The top line missed the consensus mark by 0.6%.
Options revenues climbed 35% year over year to $273.2 million. Europe and Asia Pacific revenues decreased 15 % year over year to $44.2 million. Futures net revenues decreased 10% year over year to $26.8 million for the quarter under review.
Nasdaq, Inc. (NDAQ - Free Report) reported fourth-quarter 2022 adjusted earnings per share of 64 cents, which missed the Zacks Consensus Estimate of 65 cents by nearly 1.5%. The bottom line remained unchanged year over year. Nasdaq’s revenues of $906 million increased 2.3% year over year. The top line matched the Zacks Consensus Estimate.
Annualized Recurring Revenue (ARR) of Nasdaq increased 8% year over year. Annualized SaaS revenues increased 13% and represented 36% of ARR. Operating margin of 49% contracted 200 basis points year over year.
In 2022, the Nasdaq Stock Market featured six of the 10 largest U.S. IPOs by capital raised, attracted 74% of all proceeds raised through U.S. IPOs and welcomed 14 listing switches. In the Nordic and Baltic regions, Nasdaq maintained its leadership position with 38 IPOs.
MarketAxess Holdings Inc. (MKTX - Free Report) reported fourth-quarter 2022 earnings per share of $1.58, beating the Zacks Consensus Estimate of $1.53 and our estimate of $1.45. The bottom line increased 15.3% year over year. Total revenues of $177.9 million rose 7.8% year over year in the quarter under review and beat the consensus mark of $176 million and our estimate of $175.7 million.
Active clients of MarketAxess totaled 2,068 in the fourth quarter, which increased 10% year over year. Active international clients attained a record figure of 1,006 in the quarter under review. The figure advanced 5% year over year. Operating income of $77.7 million advanced 7% year over year in the fourth quarter.
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CME Group (CME) Q4 Earnings Top on Higher Trading Volume
CME Group (CME - Free Report) reported fourth-quarter 2022 adjusted earnings per share of $1.92, which beat the Zacks Consensus Estimate of $1.90. The bottom line increased 15.7% year over year.
Quarterly results benefited from an increase in trading volumes. Average daily volume increased in four of its six asset classes.
CME Group Inc. Price, Consensus and EPS Surprise
CME Group Inc. price-consensus-eps-surprise-chart | CME Group Inc. Quote
Performance in Detail
CME Group’s revenues of $1.2 billion increased 5.3% year over year. The year-over-year increase was primarily due to higher clearing and transaction fees (up 3.4% year over year) and market data and information services (up 7.8% year over year). The top line missed the Zacks Consensus Estimate by 0.2%.
Total expenses increased 4.6% year over year to $539.5 million quarter, attributable to higher technology, professional fees and outside services, licensing and other fee agreements and other expenses.
Operating income increased 5.8% from the prior-year quarter to $668.3 million.
ADV was 21.8 million contracts, up 6% year over year.
Full-Year Highlights
Adjusted earnings per share of $7.97 beat the Zacks Consensus Estimate of $7.95. The bottom line increased 19.3% year over year.
CME Group’s revenues of $1.2 billion increased 7% year over year. The top line was almost in line the Zacks Consensus Estimate.
Non-U.S. ADV was a record 6.3 million contracts, up 15% from 2021.
Financial Update
As of Dec 31, 2022, CME Group had $2.8 billion of cash and marketable securities, down 5.2% from 2021 end. As of Dec 31, 2022, long-term debt of $3.4 billion increased 26.9% from 2021 end.
As of Dec 31, 2022, CME had total equity worth $26.9 billion, down 1.9% from 2021 end.
Capital Deployment
CME Group paid out $3 billion in dividends, including an annual variable dividend of $1.6 billion, taking the payout to $20.5 billion since the implementation of the variable dividend policy in early 2012.
On Feb 2, 2023, CME declared first-quarter dividend of $1.10 per share, representing a 10% increase from the prior payout.
Zacks Rank
CME currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Securities and Exchanges
Cboe Global Markets, Inc. (CBOE - Free Report) reported fourth-quarter 2022 adjusted earnings of $1.80 per share, which outpaced the Zacks Consensus Estimate by 1.7%. The bottom line increased 5.8% year over year.
Total adjusted revenues of CBOE Global amounted to $457.1 million for the fourth quarter, which improved 17% year over year on the back of growth in derivatives markets and data and access solutions. The top line missed the consensus mark by 0.6%.
Options revenues climbed 35% year over year to $273.2 million. Europe and Asia Pacific revenues decreased 15 % year over year to $44.2 million. Futures net revenues decreased 10% year over year to $26.8 million for the quarter under review.
Nasdaq, Inc. (NDAQ - Free Report) reported fourth-quarter 2022 adjusted earnings per share of 64 cents, which missed the Zacks Consensus Estimate of 65 cents by nearly 1.5%. The bottom line remained unchanged year over year. Nasdaq’s revenues of $906 million increased 2.3% year over year. The top line matched the Zacks Consensus Estimate.
Annualized Recurring Revenue (ARR) of Nasdaq increased 8% year over year. Annualized SaaS revenues increased 13% and represented 36% of ARR. Operating margin of 49% contracted 200 basis points year over year.
In 2022, the Nasdaq Stock Market featured six of the 10 largest U.S. IPOs by capital raised, attracted 74% of all proceeds raised through U.S. IPOs and welcomed 14 listing switches. In the Nordic and Baltic regions, Nasdaq maintained its leadership position with 38 IPOs.
MarketAxess Holdings Inc. (MKTX - Free Report) reported fourth-quarter 2022 earnings per share of $1.58, beating the Zacks Consensus Estimate of $1.53 and our estimate of $1.45. The bottom line increased 15.3% year over year. Total revenues of $177.9 million rose 7.8% year over year in the quarter under review and beat the consensus mark of $176 million and our estimate of $175.7 million.
Active clients of MarketAxess totaled 2,068 in the fourth quarter, which increased 10% year over year. Active international clients attained a record figure of 1,006 in the quarter under review. The figure advanced 5% year over year. Operating income of $77.7 million advanced 7% year over year in the fourth quarter.