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CME Group(CME) - 2025 Q2 - Earnings Call Transcript
2025-07-23 13:30
Financial Data and Key Metrics Changes - CME Group generated revenue of $1,700,000,000, up 10% from Q2 2024 [10] - Average rate per contract for the quarter was $0.69, resulting in the highest quarterly clearing and transaction fees of $1,400,000,000, up 11% year over year [10] - Adjusted operating income reached a record $1,200,000,000, up 14% year over year, with an adjusted operating margin of 71%, up from 69.1% in the same period last year [11] - Adjusted net income was $1,100,000,000, and adjusted diluted earnings per share were $2.96, both up 16% from the previous year [11] - Capital expenditures for the quarter were approximately $19,000,000, and cash at the end of the quarter was $2,200,000,000 [11] Business Line Data and Key Metrics Changes - Average daily volume (ADV) for the quarter was 30,200,000 contracts, a 16% increase year over year, with records in interest rates, agricultural commodities, and metals [4][5] - Financial products volume grew by 17%, while commodity sector volume grew by 15% [5] - International business had an ADV of 9,200,000 contracts per day, up 18% from the prior year, with EMEA up 15% and APAC up 30% [6] - Over 90,000 new retail traders participated in CME markets for the first time, a 56% increase compared to the same period last year [6] Market Data and Key Metrics Changes - Open interest increased by 7% from the end of Q2 2024 and 10% from year-end 2024 [5] - Nasdaq 100 futures and options trading volume climbed to more than 2,500,000 contracts per day, up 22% versus last year [7] - Record activity in gold and crypto markets, with gold up over 37% among retail and micro Bitcoin up 94% [40] Company Strategy and Development Direction - CME Group focuses on expanding its retail trader base and enhancing market access through partnerships with new futures brokers [6][39] - The company is optimistic about the growth of its crypto franchise and plans to continue participating in that market [33] - CME Group announced a ten-year extension of its exclusive license to offer futures and options on NASDAQ indexes, ensuring continued access to these products [8][9] Management's Comments on Operating Environment and Future Outlook - Management highlighted the resilience of markets amid global uncertainties, including record levels of debt and geopolitical tensions [18][20] - The company anticipates continued demand for risk management products due to macroeconomic factors [20] - Management expressed optimism about the retail segment's growth and the increasing sophistication of new traders [29][30] Other Important Information - CME Group's adjusted effective tax rate was 23.3% [11] - The company paid dividends of $455,000,000 in Q2 and approximately $3,000,000,000 over the first half of the year [11] - CME Group's total adjusted operating expenses for the year are expected to be approximately $1,635,000,000, which is $15,000,000 below prior guidance [12] Q&A Session Summary Question: What are the key drivers that can sustain strong hedging activities going into the second half? - Management noted the difficulty in predicting volumes but emphasized the need for risk management due to global uncertainties, including high debt levels and geopolitical unrest [17][20] Question: Can you discuss the recent take-up of retail traders and their trading behavior? - Management reported a significant increase in new retail traders and expressed confidence in their continued participation across various asset classes [27][29] Question: How is the company thinking about capital deployment given the cash balances? - Management stated that capital deployment strategies remain opportunistic, balancing buybacks and dividends based on market conditions [51][53] Question: Can you discuss the impact of tariffs on the physical commodities business? - Management indicated that tariffs are leading to market dislocations, creating opportunities for increased trading activity across various client segments [58][60] Question: What is the status of the trial with former floor traders? - Management refrained from commenting on pending litigation but confirmed no accruals have been made for potential damages [90] Question: What are the hurdles for bringing 24/7 trading to the marketplace? - Management acknowledged the costs associated with staffing for 24/7 trading and indicated that demand will dictate the feasibility of such an initiative [96][100] Question: How has the FX Spot Plus product performed since its launch? - Management reported strong initial performance with significant trading volume and participation from new entities, enhancing market quality [107][109]
CME Group (CME) Surpasses Q2 Earnings and Revenue Estimates
ZACKS· 2025-07-23 13:10
Group 1: Earnings Performance - CME Group reported quarterly earnings of $2.96 per share, exceeding the Zacks Consensus Estimate of $2.91 per share, and up from $2.56 per share a year ago [1] - The earnings surprise for this quarter was +1.72%, and the company has surpassed consensus EPS estimates in all four of the last quarters [2] - Revenues for the quarter ended June 2025 were $1.69 billion, surpassing the Zacks Consensus Estimate by 0.51%, and up from $1.53 billion year-over-year [3] Group 2: Stock Performance and Outlook - CME shares have increased approximately 18.3% since the beginning of the year, compared to a 7.3% gain in the S&P 500 [4] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters [5] - The current consensus EPS estimate for the next quarter is $2.75 on revenues of $1.63 billion, and for the current fiscal year, it is $11.12 on revenues of $6.57 billion [8] Group 3: Industry Context - The Securities and Exchanges industry, to which CME belongs, is currently ranked in the top 10% of over 250 Zacks industries, indicating strong performance potential [9] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [6] - The estimate revisions trend for CME was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, suggesting it will perform in line with the market [7]
CME Group(CME) - 2025 Q2 - Quarterly Results
2025-07-23 11:08
Exhibit 99.1 Media contact Investor contact Timothy Barello, 212.299.2256 Adam Minick, 312.340.8365 Laurie Bischel, 312.648.8698 investors@cmegroup.com news@cmegroup.com CME-G cmegroup.mediaroom.com FOR IMMEDIATE RELEASE - more - • Record revenue of $1.7 billion, up 10% from Q2 2024 • Record average daily volume (ADV) of 30.2 million contracts, up 16% from Q2 2024 CME Group Inc. Reports All-Time Record Revenue, Adjusted Operating Income, Adjusted Net Income and Adjusted Earnings Per Share for Q2 2025 CHICAG ...
芝加哥商品交易所集团(CME)二季度日均交易量3,022万手,符合市场预期;营收17亿美元,预期16.9亿美元;调整后每股收益为2.96美元,预期为2.91美元。
news flash· 2025-07-23 11:05
Core Insights - Chicago Mercantile Exchange Group (CME) reported a second-quarter average daily trading volume of 30.22 million contracts, meeting market expectations [1] - Revenue for the quarter was $1.7 billion, slightly above the expected $1.69 billion [1] - Adjusted earnings per share were $2.96, surpassing the forecast of $2.91 [1]
CME Group Inc. Reports All-Time Record Revenue, Adjusted Operating Income, Adjusted Net Income and Adjusted Earnings Per Share for Q2 2025
Prnewswire· 2025-07-23 11:00
Core Insights - CME Group Inc. reported record financial results for Q2 2025, with revenue of $1.7 billion, up 10% from Q2 2024, and operating income of $1.1 billion [2][8] - The average daily volume (ADV) reached a record 30.2 million contracts, reflecting a 16% increase year-over-year, driven by heightened demand for benchmark futures and options [2][8] - The company experienced a significant increase in new retail traders, with a 57% year-over-year growth, contributing to a record Micros ADV of 4.1 million contracts [2] Financial Performance - Net income for Q2 2025 was $1.0 billion, with diluted earnings per share at $2.81; on an adjusted basis, net income was $1.1 billion and diluted earnings per share were $2.96 [2][12] - Clearing and transaction fees revenue totaled $1.4 billion, with an average rate per contract of $0.690; market data revenue was $198 million [3][12] - Total revenues for the first six months of 2025 reached $3.334 billion, compared to $3.020 billion for the same period in 2024 [12] Balance Sheet and Shareholder Returns - As of June 30, 2025, CME Group had $2.2 billion in cash and $3.4 billion in debt; the company paid approximately $3.0 billion in dividends during the first half of the year [4] - Since implementing a variable dividend policy in early 2012, CME Group has returned $29.1 billion to shareholders in the form of dividends [4] Market Position and Strategy - CME Group is recognized as the world's leading derivatives marketplace, offering a wide range of global benchmark products across major asset classes [5] - The company continues to enhance its trading platforms and services, including futures and options on futures trading through CME Globex and fixed income trading via BrokerTec [5]
美国芝加哥商业交易所(CME)集团和纳斯达克将纳斯达克100期货的许可证延长至2039年。
news flash· 2025-07-22 19:17
Group 1 - The core point of the article is that the Chicago Mercantile Exchange (CME) Group and Nasdaq have extended the license for Nasdaq-100 futures until 2039 [1]
7月21日芝加哥商业交易所(CME)能源类商品成交量报告已在中心更新!欢迎点击查看
news flash· 2025-07-22 05:28
Core Insights - The Chicago Mercantile Exchange (CME) has updated its energy commodity trading volume report as of July 21 [1] Group 1 - The report provides insights into the trading activity of energy commodities on the CME [1]
Is a Beat in the Cards for CME Group This Earnings Season?
ZACKS· 2025-07-21 15:21
Core Insights - CME Group Inc. is anticipated to show improvements in both revenue and earnings for the second quarter of 2025, with revenue expected to reach $1.68 billion, reflecting a 9.4% year-over-year growth [1] - The consensus estimate for earnings per share is $2.90, indicating a 13.2% increase from the previous year, although this estimate has seen a downward adjustment of 5.7% to 1.3% in the last 30 days [2] Revenue and Earnings Estimates - The Zacks Consensus Estimate for second-quarter revenues is $1.68 billion, which is a 9.4% increase from the prior year [1] - The earnings estimate is $2.90 per share, with a year-over-year increase of 13.2% [2] - CME Group has an Earnings ESP of +0.93%, with the Most Accurate Estimate at $2.93, suggesting a potential earnings beat [3] Factors Influencing Performance - The second-quarter performance is expected to benefit from a diverse product portfolio, increased market volatility, and a strong market position [4] - Higher trading volumes across asset classes are likely to drive clearing and transaction fees, projected at $1.3 billion, a 7.7% increase from the previous year [5] - CME reported a record average daily volume of 30.2 million contracts, up 16% year-over-year, with international ADV reaching 9.2 million contracts, an 18% increase [6][10] Revenue Breakdown - Market data and information services revenues are expected to be $196.7 million, reflecting a 12.4% increase from the prior year, driven by price increases and higher device counts [7] - The Zacks Consensus Estimate for market data and information services revenues is $195 million, indicating an 11.4% increase from the previous year [7] Expense Projections - Anticipated expenses for the quarter are $513.9 million, representing an 8.4% increase from the year-ago figure, primarily due to higher compensation, benefits, and technology expenses [8]
Stay Ahead of the Game With CME (CME) Q2 Earnings: Wall Street's Insights on Key Metrics
ZACKS· 2025-07-18 14:15
Core Insights - CME Group is expected to report quarterly earnings of $2.90 per share, reflecting a 13.3% increase year-over-year, with revenues projected at $1.68 billion, a 9.4% increase from the previous year [1] Revenue Estimates - Analysts estimate 'Revenues- Other' to be $105.21 million, indicating a year-over-year decrease of 2.2% [4] - 'Revenues- Clearing and transaction fees' are expected to reach $1.37 billion, showing a year-over-year increase of 9.5% [4] - 'Revenues- Market data and information services' are projected at $195.23 million, representing an 11.6% increase from the prior year [4] - 'Revenues- Clearing and transaction fees- Interest rates' are forecasted at $451.83 million, a 15% increase year-over-year [5] - 'Revenues- Clearing and transaction fees- Foreign exchange' is expected to be $51.33 million, reflecting a 0.5% increase from the previous year [5] Volume Estimates - The consensus for 'Average daily volume (including NYMEX and COMEX)' is 29.65 million, up from 25.94 million year-over-year [6] - 'Average daily volume - Metals (including NYMEX and COMEX)' is projected at 901.03 thousand, compared to 868.00 thousand in the same quarter last year [6] - 'Average daily volume - Interest rates (including NYMEX and COMEX)' is expected to reach 15.15 million, up from 12.89 million year-over-year [7] - 'Average daily volume - Equity indexes (including NYMEX and COMEX)' is estimated at 7.62 million, compared to 6.78 million in the previous year [7] - 'Average daily volume - Foreign exchange (including NYMEX and COMEX)' is projected to remain at 1.08 million, unchanged from the previous year [8] - 'Average daily volume - Energy (including NYMEX and COMEX)' is expected to be 2.95 million, up from 2.45 million year-over-year [8] - 'Average daily volume - Agricultural commodities (including NYMEX and COMEX)' is forecasted at 1.95 million, compared to 1.88 million in the same quarter last year [9] Stock Performance - Over the past month, CME shares have returned +2.1%, while the Zacks S&P 500 composite has seen a +5.4% change, indicating that CME is likely to perform in line with the overall market [10]