Earnings

CME Group's Third-Quarter Revenue Rises To $1.7 Billion From $1.54 Billion, Market Data Hits A Record

Adjusted earnings per share were $3.02 versus $2.68 a year earlier, and the company returned nearly $1 billion to shareholders.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

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CME Group's Third-Quarter Revenue Rises To $1.7 Billion From $1.54 Billion, Market Data Hits A Record

CME Group's third-quarter revenue was $1.7 billion, up from $1.54 billion a year earlier, with net income of $1.0 billion and diluted earnings per share of $2.89, according to an 8-K filed Wednesday. Average daily volume hit a third-quarter record of 29.4 million contracts.

What the results show

On an adjusted basis, operating income was $1.2 billion, net income was $1.1 billion and diluted earnings per share were $3.02, versus $2.68 a year earlier, the company said. Operating income on the standard accounting basis was $1.1 billion.

Market data revenue totaled a record $243 million, up 20%. Clearing and transaction fees brought in $1.4 billion, at an average rate of $0.679 per contract.

Chairman and CEO Terry Duffy said, "As uncertainty intensified in Q3, clients turned to CME Group in record numbers to manage risk and capitalize on opportunities." He cited double-digit volume growth across all six asset classes, and said it was the second-highest quarter ever for revenue and adjusted net income.

Duffy also said the company generated a new high of $100 billion in average daily capital efficiencies, and that it made strong progress in its cloud migration.

Cash, debt and payouts

CME returned nearly $1 billion to shareholders in the quarter: $465 million in regular quarterly dividends and $524 million in share repurchases. At September 30 it held $2.4 billion in cash, including $225 million deposited with Fixed Income Clearing Corporation, against $3.4 billion of debt.

Shares closed at $295.31 on Tuesday, before the results were released.

What to watch

CME held a Q&A call on the results at 8:30 a.m. Eastern on Wednesday. An archived recording will be available for up to two months afterward.

Duffy's own framing of the quarter: record third-quarter volume, and the second-highest quarter ever for revenue and adjusted net income.

Sources

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