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CME Group Q3 Earnings and Revenues Beat Estimates on Higher Volumes
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CME Group (CME - Free Report) reported third-quarter 2024 adjusted earnings per share of $2.68, which beat the Zacks Consensus Estimate by 1.1%. The bottom line increased 19.1% year over year.
Quarterly results benefited from a record in trading volumes. Average daily volume increased in its six asset classes, with average daily volume (ADV) up 20% in commodities and 28% in financial markets.
Performance in Detail
CME Group’s revenues of $1.6 billion increased 18.4% year over year. The year-over-year increase was primarily due to higher clearing and transaction fees (up 19.5% year over year), market data and information services (up 6.3% year over year) and other (28.8% year over year). The top line beat the Zacks Consensus Estimate by 0.7%.
Total expenses rose 8.2% year over year to $560.2 million, attributable to higher compensation and benefits, technology, and licensing and other fee agreements. It exceeded our estimate of $500.3 million.
Operating income increased 24.8% from the prior-year quarter to $1 billion. Our estimate was $954.4 million.
ADV was 28.2 million contracts, including record non-U.S. ADV, with EMEA up 30% and Asia up 28% year over year. The total average rate per contract was 66.6 cents.
Financial Update
As of Sept. 30, 2024, CME Group had $2.3 billion of cash and marketable securities, down 19.5% from the 2023-end level. As of Sept. 30, 2024, long-term debt was $2.7 billion, down 21.8% from 2023-end. As of Sept. 30, 2024, CME had shareholders' equity worth $28.2 billion, up 5.5% from the end of 2023.
Capital Deployment
CME Group paid out $419 billion in dividends, taking the payout to $25.6 billion since the implementation of the variable dividend policy in early 2012.
Nasdaq (NDAQ - Free Report) will report third-quarter 2024 results on Oct. 24, before market open. The Zacks Consensus Estimate for third-quarter earnings per share is pegged at 69 cents, suggesting a decrease of 2.8% from the year-ago quarter’s reported figure.
NDAQ’s earnings beat estimates in three of the last four quarters while missing in the remaining one.
Intercontinental Exchange (ICE - Free Report) will report third-quarter 2024 results on Oct. 31, before market open. The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $1.54, indicating an increase of 5.7% from the year-ago quarter’s reported figure.
ICE’s earnings beat estimates in three of the last four quarters and met estimates in one.
Cboe Global Markets (CBOE - Free Report) will report third-quarter 2024 results on Nov. 1, before market open. The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $2.18, suggesting an increase of 5.8% from the year-ago quarter’s reported figure.
CBOE’s earnings beat estimates in each of the last four reported quarters.
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CME Group Q3 Earnings and Revenues Beat Estimates on Higher Volumes
CME Group (CME - Free Report) reported third-quarter 2024 adjusted earnings per share of $2.68, which beat the Zacks Consensus Estimate by 1.1%. The bottom line increased 19.1% year over year.
Quarterly results benefited from a record in trading volumes. Average daily volume increased in its six asset classes, with average daily volume (ADV) up 20% in commodities and 28% in financial markets.
Performance in Detail
CME Group’s revenues of $1.6 billion increased 18.4% year over year. The year-over-year increase was primarily due to higher clearing and transaction fees (up 19.5% year over year), market data and information services (up 6.3% year over year) and other (28.8% year over year). The top line beat the Zacks Consensus Estimate by 0.7%.
CME Group Inc. Price, Consensus and EPS Surprise
CME Group Inc. price-consensus-eps-surprise-chart | CME Group Inc. Quote
Total expenses rose 8.2% year over year to $560.2 million, attributable to higher compensation and benefits, technology, and licensing and other fee agreements. It exceeded our estimate of $500.3 million.
Operating income increased 24.8% from the prior-year quarter to $1 billion. Our estimate was $954.4 million.
ADV was 28.2 million contracts, including record non-U.S. ADV, with EMEA up 30% and Asia up 28% year over year. The total average rate per contract was 66.6 cents.
Financial Update
As of Sept. 30, 2024, CME Group had $2.3 billion of cash and marketable securities, down 19.5% from the 2023-end level. As of Sept. 30, 2024, long-term debt was $2.7 billion, down 21.8% from 2023-end. As of Sept. 30, 2024, CME had shareholders' equity worth $28.2 billion, up 5.5% from the end of 2023.
Capital Deployment
CME Group paid out $419 billion in dividends, taking the payout to $25.6 billion since the implementation of the variable dividend policy in early 2012.
Zacks Rank
CME Group currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Nasdaq (NDAQ - Free Report) will report third-quarter 2024 results on Oct. 24, before market open. The Zacks Consensus Estimate for third-quarter earnings per share is pegged at 69 cents, suggesting a decrease of 2.8% from the year-ago quarter’s reported figure.
NDAQ’s earnings beat estimates in three of the last four quarters while missing in the remaining one.
Intercontinental Exchange (ICE - Free Report) will report third-quarter 2024 results on Oct. 31, before market open. The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $1.54, indicating an increase of 5.7% from the year-ago quarter’s reported figure.
ICE’s earnings beat estimates in three of the last four quarters and met estimates in one.
Cboe Global Markets (CBOE - Free Report) will report third-quarter 2024 results on Nov. 1, before market open. The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $2.18, suggesting an increase of 5.8% from the year-ago quarter’s reported figure.
CBOE’s earnings beat estimates in each of the last four reported quarters.