Canada's TMX Group beats Q4 revenue expectations

Overview

• Canada financial services firm's Q4 revenue rose 16%, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Company announced a 9% dividend increase

Outlook

• TMX Group plans to accelerate growth in 2026

Result Drivers

• DERIVATIVES TRADING - Revenue from derivatives trading and clearing rose 27% due to higher rates per contract and increased volumes

• EQUITY TRADING VOLUMES - Equity trading volumes increased 38%, boosting equities and fixed income trading revenue by 23%

• ACQUISITIONS - Revenue growth included contributions from acquisitions like 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 6 "strong buy" or "buy", 2 "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 29.8% above its February 4 closing price of C$47.01

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 23 three months ago

Press Release: ID:nNFC85CGhn

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