CME Group Q3 Earnings and Revenues Beat Estimates on Higher Volumes

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]