Stock exchange operator TMX's Q3 revenue beats estimates on strong derivatives trading

Overview

• TMX Group Q3 revenue rises 18% yr/yr, beating analyst expectations

• Adjusted EPS for Q3 beats consensus, reflecting strong operational performance

• TMX Group completes acquisition of Verity

Outlook

• TMX Group focuses on accelerating growth and delivering shareholder value in 2025

• Company highlights strategic focus on global growth and market ecosystem excellence

• TMX Group sees positive impact from recent acquisitions on client offerings

Result Drivers

• DERIVATIVES AND GLOBAL INSIGHTS - Strong revenue growth driven by a 27% increase in derivatives trading and a 35% increase in TMX VettaFi

• FX IMPACT - Favorable foreign exchange impact due to stronger GBP and USD relative to CAD contributed to revenue increase

• ACQUISITIONS - Revenue boosted by acquisitions of Newsfile, iNDEX Research, Bond Indices, and ETF Stream

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "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$61.00, about 18.3% above its October 27 closing price of C$49.83

• The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 28 three months ago

Press Release: ID:nNFC3Sz373

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com.