CME Q4 adjusted profit beats estimates on record volume

Overview

• Derivatives marketplace's Q4 revenue missed analyst expectations

• Adjusted net income for Q4 beat analyst estimates

• Company reported fourth consecutive year of record annual revenue

Outlook

• CME Group plans to expand access through U.S. Treasury clearing and 24/7 cryptocurrency trading

• Company aims to increase average daily margin efficiencies for market users

• CME Group to focus on prediction markets as part of future growth strategy

Result Drivers

• RECORD VOLUME - Achieved highest Q4 volume on record with 27.4 mln contracts, driven by 12% growth in commodities and 5% in financials

• INTERNATIONAL GROWTH - Non-U.S. average daily volume increased 9%, with Asia up 18% and EMEA up 6%

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 8 "strong buy" or "buy", 5 "hold" and 3 "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 CME Group Inc is $302.00, about 3% above its February 3 closing price of $293.07

• The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release: ID:nPn3VqG3fa

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