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Core Viewpoint - CME Group reported strong third-quarter 2024 results, with adjusted earnings per share of $2.68, exceeding estimates and showing a year-over-year increase of 19.1% [1] Financial Performance - Revenues reached $1.6 billion, marking an 18.4% increase year over year, driven by higher clearing and transaction fees (up 19.5%), market data and information services (up 6.3%), and other revenues (up 28.8%) [2] - Total expenses rose 8.2% year over year to $560.2 million, primarily due to increased compensation, technology costs, and licensing fees, surpassing estimates [2] - Operating income increased by 24.8% to $1 billion, exceeding estimates [2] - Average daily volume (ADV) was 28.2 million contracts, with significant growth in non-U.S. ADV, particularly in EMEA (up 30%) and Asia (up 28%) [2] Financial Update - As of September 30, 2024, CME Group had $2.3 billion in cash and marketable securities, a decrease of 19.5% from the end of 2023 [3] - Long-term debt stood at $2.7 billion, down 21.8% from the end of 2023 [3] - Shareholders' equity was valued at $28.2 billion, reflecting a 5.5% increase from the end of 2023 [3] Capital Deployment - CME Group has paid out $419 billion in dividends, totaling $25.6 billion since the introduction of its variable dividend policy in early 2012 [4] Market Position - CME Group currently holds a Zacks Rank of 2 (Buy), indicating a favorable outlook in the market [5]

Financial Data and Key Metrics Changes - The third quarter average daily volume (ADV) reached 28.3 million contracts, marking a 27% increase year-over-year, the highest quarterly ADV in CME Group's history [5][6] - Quarterly revenue was nearly $1.6 billion, up 18% from Q3 2023, with record net income of $977 million and earnings per share of $2.68, both up 19% year-over-year [9][10] - Adjusted operating margin improved to 69.1%, up 260 basis points from 66.5% in the same period last year [10] Business Line Data and Key Metrics Changes - Financial products volume grew by 28%, while commodity sector volumes increased by 20% [6] - The interest rate complex saw a 36% year-over-year growth, averaging 14.9 million contracts per day, with SOFR futures and treasuries achieving all-time record volumes [6][10] - The international business recorded an ADV of 8.4 million contracts, up 29% year-over-year, with EMEA leading at 6.2 million contracts (up 30%) and APAC at 1.9 million contracts (up 28%) [8] Market Data and Key Metrics Changes - The market data revenue increased by 6% to $178 million, while other revenue rose by 29% to over $109 million [9] - The company achieved record volumes across all six asset classes for the second consecutive quarter, indicating broad-based growth [5][8] Company Strategy and Development Direction - The company continues to focus on product innovation, new customer acquisition, and maintaining deep liquid markets across major asset classes [10] - Management emphasized the importance of risk management in a volatile environment, driven by geopolitical events and economic uncertainties [7][10] - The company is monitoring its capital return policy and potential M&A opportunities, indicating a flexible approach to shareholder value [13] Management's Comments on Operating Environment and Future Outlook - Management noted that the uncertainty around U.S. elections and global geopolitical events is increasing the demand for liquid and efficient markets [7] - The company expects continued growth in interest rate trading despite recent Fed rate cuts, attributing this to ongoing issuance and deficit financing [7][10] - The effective tax rate is expected to decrease due to strong international business growth, with guidance lowered to a range of 22.5% to 23% [10] Other Important Information - Capital expenditures for Q3 were approximately $30 million, with cash reserves at about $2.6 billion [10] - The company reported average cash balances of $72 billion and non-cash collateral of $165 billion for the quarter [60] Q&A Session Summary Question: Thoughts on capital return policy and M&A - Management is continuously monitoring capital return strategies and is open to M&A opportunities if they align with shareholder interests [13] Question: Update on customer efficiencies and savings - The portfolio margining program delivers average daily savings of about $7 billion, with cross-margining programs achieving upwards of $1 billion in savings [15][16] Question: Impact of new customer acquisition on volumes - New institutional client growth is up almost 40% this year, with retail channels welcoming over 176,000 new traders year-to-date [19][21] Question: Competitive landscape in rates and pricing strategies - Management remains focused on maintaining competitive pricing without compromising value, emphasizing the importance of market conditions [37][42] Question: Growth in the energy business and international markets - The energy business has seen record revenues, with significant growth driven by international participation and physical flows of U.S. benchmarks [46][49]

For the quarter ended September 2024, CME Group (CME) reported revenue of $1.58 billion, up 18.4% over the same period last year. EPS came in at $2.68, compared to $2.25 in the year-ago quarter.The reported revenue represents a surprise of +0.66% over the Zacks Consensus Estimate of $1.57 billion. With the consensus EPS estimate being $2.65, the EPS surprise was +1.13%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expe ...

CME Group (CME) came out with quarterly earnings of $2.68 per share, beating the Zacks Consensus Estimate of $2.65 per share. This compares to earnings of $2.25 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 1.13%. A quarter ago, it was expected that this parent company of the Chicago Board of Trade and other exchanges would post earnings of $2.51 per share when it actually produced earnings of $2.56, delivering a surprise of ...

Financial Performance - Record revenue of $1.6 billion for Q3 2024, marking the best quarter in CME Group history[2] - Adjusted net income for Q3 2024 was $977 million, with diluted earnings per share of $2.68[2] - Total revenues for the quarter ended September 30, 2024, were $1,584.4 million, a 18.4% increase from $1,337.8 million in the same quarter of 2023[10] - Operating income for the quarter was $1,024.2 million, up 24.8% from $820.2 million year-over-year[10] - Net income attributable to common shareholders was $901.3 million, compared to $740.8 million in the prior year, representing a 21.7% increase[10] - Adjusted net income for the quarter was $977.0 million, compared to $818.0 million in the same quarter last year, reflecting a 19.5% increase[14] - Basic earnings per share attributable to common shareholders was $2.51 for Q3 2024, up from $2.06 in Q3 2023[15] Trading Volume - Average daily volume (ADV) reached a record 28.3 million contracts, with a 28% increase in financial product volumes[2] - Average Daily Volume (ADV) for total trading was 28,289 thousand contracts in Q3 2024, a 26.6% increase from 22,349 thousand contracts in Q3 2023[12] - Interest rates futures saw a 36% increase, reaching a record ADV of 14.9 million contracts[2] - Commodities volume increased by 20%, while options volume rose by 27%[2] Revenue Sources - Clearing and transaction fees revenue for Q3 2024 totaled $1.3 billion, with an average rate per contract of $0.666[3] - The average rate per contract (RPC) for total trading was $0.666 in Q3 2024, down from $0.707 in Q3 2023[13] - Investment income for the quarter was $1,026.8 million, down from $1,272.5 million in the same quarter of the previous year[10] Financial Position - Cash and cash equivalents as of September 30, 2024, totaled approximately $2.6 billion[3] - Total assets increased to $137.8 billion as of September 30, 2024, compared to $129.7 billion at the end of 2023[9] - Total liabilities rose to $109.6 billion, with long-term debt at $2.7 billion[9] Expenses - Total expenses for the quarter were $560.2 million, an increase from $517.6 million in Q3 2023, reflecting a 8.2% rise[10] Shareholder Returns - The company returned approximately $25.6 billion to shareholders in dividends since 2012[3] Trading Days - The company reported a total of 636 trading days in Q3 2024, consistent with the previous quarter[11]

Record revenue of $1.6 billionRecord quarterly ADV of 28.3 million contracts - the second consecutive quarter of volume, open interest growth across every asset classCHICAGO, Oct. 23, 2024 /PRNewswire/ -- CME Group Inc. (NASDAQ: CME) today reported financial results for the third quarter of 2024.The company reported revenue of $1.6 billion and operating income of $1.0 billion for the third quarter of 2024. Net income was $913 million and diluted earnings per common share were $2.50. On an adjusted basis, ne ...

CME Group Inc. (CME) is slated to report third-quarter 2024 earnings on Oct. 23, before market open. CME's earnings beat estimates in each of the trailing four quarters. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. Factors to Consider A diverse product portfolio, increased volatility and a strong market position are likely to have aided CME Group's performance in the third quarter. Increases in market data and information services, clearing, transaction fees and other revenues a ...

Core Insights - CME Group (CME) is expected to report quarterly earnings of $2.57 per share, reflecting a year-over-year increase of 14.2% [1] - Anticipated revenues for the quarter are projected to be $1.55 billion, indicating a 15.6% increase compared to the same quarter last year [1] - The consensus EPS estimate has been revised upward by 2.7% in the past 30 days, showcasing analysts' reassessment of their initial estimates [1] Revenue Estimates - 'Revenues- Other' are expected to reach $104.36 million, representing a 23.2% increase from the prior-year quarter [2] - 'Revenues- Clearing and transaction fees' are forecasted to be $1.26 billion, indicating a 16% increase year-over-year [2] - 'Revenues- Market data and information services' are projected to be $175.74 million, suggesting a 4.9% increase from the previous year [2] Clearing and Transaction Fees - 'Revenues- Clearing and transaction fees - Interest rates' are estimated at $414.55 million, reflecting an 18.1% increase from the prior-year quarter [3] - 'Revenues- Clearing and transaction fees - Foreign exchange' are expected to be $49.93 million, indicating a 6.5% increase year-over-year [3] Average Daily Volume - The consensus for 'Average daily volume (including NYMEX and COMEX)' is projected at 26,245.30 thousand, compared to 22.35 million in the same quarter last year [3] - 'Average daily volume - Metals (including NYMEX and COMEX)' is estimated at 723.34 thousand, up from 528 thousand in the same quarter last year [3] - 'Average daily volume - Interest rates (including NYMEX and COMEX)' is expected to reach 13,394.10 thousand, compared to 10.97 million in the same quarter last year [4] - 'Average daily volume - Equity indexes (including NYMEX and COMEX)' is projected at 6,923.93 thousand, compared to 6.35 million in the prior year [4] - 'Average daily volume - Foreign exchange (including NYMEX and COMEX)' is estimated at 1,024.33 thousand, up from 942 thousand year-over-year [4] - 'Average daily volume - Energy (including NYMEX and COMEX)' is expected to be 2,489.19 thousand, compared to 2.13 million in the same quarter last year [4] - 'Average daily volume - Agricultural commodities (including NYMEX and COMEX)' is projected at 1,690.61 thousand, compared to 1.43 million in the same quarter last year [5] Stock Performance - CME shares have returned +5.8% over the past month, outperforming the Zacks S&P 500 composite's +3.8% change [6] - CME holds a Zacks Rank 2 (Buy), indicating expectations to outperform the overall market in the near future [6]

CHICAGO, Oct. 17, 2024 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced its new CBL Australian Carbon Credit Unit (ACCU) futures have launched and are available for trading. A total of five contracts traded as a block between Freepoint Commodities and Mercuria on October 14, 2024. "We are pleased to see industry interest and support for our new CBL ACCU futures, which are the latest product we have launched with Xpansiv to help clients manage the risks associated with ...