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CME Group (CME) Q3 Earnings Beat on Higher Trading Volume
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CME Group (CME - Free Report) reported third-quarter 2022 adjusted earnings per share of $1.98, which beat the Zacks Consensus Estimate of $1.93. The bottom line increased 23.8% year over year.
Quarterly results benefited from a 26% increase in trading volume, generating double-digit growth in total revenues. Average daily volume increased in five of its six asset classes.
CME Group’s revenues of $1.2 billion increased 10.6% year over year. The year-over-year increase was primarily due to higher clearing and transaction fees (up 13.6% year over year) and market data and information services (up 6.3% year over year). The top line beat the Zacks Consensus Estimate by 0.1%.
Total expenses decreased 1.5% year over year to $489 million quarter, attributable to lower compensation and benefits, technology, professional fees and outside services, depreciation and amortization and amortization of purchased intangibles.
Operating income increased 20.4% from the prior-year quarter to $738.8 million.
ADV was 22.4 million contracts, including non-U.S. ADV of 6.1 million contracts, led by 41% growth in Asia, 31% in Latin America and 14% in EMEA.
Financial Update
As of Sep 30, 2022, CME Group had $2.2 billion of cash and marketable securities, down 24.7% from 2021 end. As of Sep 30, 2022, long-term debt of $3.4 billion increased 26.9% from 2021 end.
As of Sep 30, 2022, CME had total equity worth $28.3 billion, up 3.1% from 2021 end.
Capital Deployment
CME Group paid out $363 billion in dividends, taking the tally to $18.8 billion since the implementation of the variable dividend policy in early 2012.
Of the industry players that have reported third-quarter results so far, Nasdaq Inc. (NDAQ - Free Report) and MarketAxess Holdings (MKTX - Free Report) beat the respective Zacks Consensus Estimate for earnings.
Nasdaq’s third-quarter 2022 adjusted earnings per share of 68 cents beat the Zacks Consensus Estimate of 65 cents by 4.6% and improved 15% year over year. Revenues of $890 million increased 6% year over year but missed the Zacks Consensus Estimate by 0.1%.
Annualized recurring revenue (ARR) increased 8% year over year. Annualized SaaS revenues increased 13% and represented 35% of ARR. The Nasdaq stock market welcomed 98 new company listings in the third quarter of 2022, including 35 IPOs. The number of listed companies was 4,296 at quarter end.
MarketAxess’ third-quarter 2022 earnings per share of $1.58 beat the Zacks Consensus Estimate by 6% and improved nearly 4% year over year. Total revenues amounted to $172.1 million, rising 6% year over year but fell short of the consensus mark by a whisker.
Active clients of MarketAxess totaled 1,972 in the third quarter, which increased 7% year over year. Active international clients attained a record figure of 993 in the quarter under review. The figure advanced 6% year over year. Commission revenues of $153.2 million climbed 7.2% year over year.
Upcoming Release
Intercontinental Exchange Inc. (ICE - Free Report) is scheduled to release third-quarter 2022 earnings on Nov 3. The Zacks Consensus Estimate for the third quarter is pegged at $1.27, indicating a decrease of 2.3% from the year-ago reported figure.
Intercontinental Exchange beat estimates in the last four reported quarters.
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CME Group (CME) Q3 Earnings Beat on Higher Trading Volume
CME Group (CME - Free Report) reported third-quarter 2022 adjusted earnings per share of $1.98, which beat the Zacks Consensus Estimate of $1.93. The bottom line increased 23.8% year over year.
Quarterly results benefited from a 26% increase in trading volume, generating double-digit growth in total revenues. Average daily volume increased in five 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 10.6% year over year. The year-over-year increase was primarily due to higher clearing and transaction fees (up 13.6% year over year) and market data and information services (up 6.3% year over year). The top line beat the Zacks Consensus Estimate by 0.1%.
Total expenses decreased 1.5% year over year to $489 million quarter, attributable to lower compensation and benefits, technology, professional fees and outside services, depreciation and amortization and amortization of purchased intangibles.
Operating income increased 20.4% from the prior-year quarter to $738.8 million.
ADV was 22.4 million contracts, including non-U.S. ADV of 6.1 million contracts, led by 41% growth in Asia, 31% in Latin America and 14% in EMEA.
Financial Update
As of Sep 30, 2022, CME Group had $2.2 billion of cash and marketable securities, down 24.7% from 2021 end. As of Sep 30, 2022, long-term debt of $3.4 billion increased 26.9% from 2021 end.
As of Sep 30, 2022, CME had total equity worth $28.3 billion, up 3.1% from 2021 end.
Capital Deployment
CME Group paid out $363 billion in dividends, taking the tally to $18.8 billion since the implementation of the variable dividend policy in early 2012.
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 Industry Players
Of the industry players that have reported third-quarter results so far, Nasdaq Inc. (NDAQ - Free Report) and MarketAxess Holdings (MKTX - Free Report) beat the respective Zacks Consensus Estimate for earnings.
Nasdaq’s third-quarter 2022 adjusted earnings per share of 68 cents beat the Zacks Consensus Estimate of 65 cents by 4.6% and improved 15% year over year. Revenues of $890 million increased 6% year over year but missed the Zacks Consensus Estimate by 0.1%.
Annualized recurring revenue (ARR) increased 8% year over year. Annualized SaaS revenues increased 13% and represented 35% of ARR. The Nasdaq stock market welcomed 98 new company listings in the third quarter of 2022, including 35 IPOs. The number of listed companies was 4,296 at quarter end.
MarketAxess’ third-quarter 2022 earnings per share of $1.58 beat the Zacks Consensus Estimate by 6% and improved nearly 4% year over year. Total revenues amounted to $172.1 million, rising 6% year over year but fell short of the consensus mark by a whisker.
Active clients of MarketAxess totaled 1,972 in the third quarter, which increased 7% year over year. Active international clients attained a record figure of 993 in the quarter under review. The figure advanced 6% year over year. Commission revenues of $153.2 million climbed 7.2% year over year.
Upcoming Release
Intercontinental Exchange Inc. (ICE - Free Report) is scheduled to release third-quarter 2022 earnings on Nov 3. The Zacks Consensus Estimate for the third quarter is pegged at $1.27, indicating a decrease of 2.3% from the year-ago reported figure.
Intercontinental Exchange beat estimates in the last four reported quarters.