Canada's TMX Group Q2 revenue up 15%, beats estimates

Overview

• TMX Group Q2 revenue grows 15%, beating analyst expectations, per LSEG data

• Adjusted EPS for Q2 rises 21%, beating consensus, per LSEG data

• Company announces 10% dividend increase, fifth in three years

Outlook

• TMX Group remains committed to executing long-term growth strategy

Result Drivers

• DERIVATIVES TRADING - Revenue from derivatives trading and clearing rose 33% due to strong volumes

• EQUITIES AND FIXED INCOME - Equities and fixed income trading revenue increased 18%, driven by higher trading volumes

• FX IMPACT - Favorable FX impact from stronger USD and GBP relative to CAD contributed to revenue growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the financial & commodity market operators & service providers peer group is "buy."

• Wall Street's median 12-month price target for TMX Group Ltd is C$58.50, about 3.9% above its July 30 closing price of C$56.23

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 27 three months ago

Press Release: ID:nNFC7WqWPX