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FinancialsConservativeLarge CapNeutral

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

MetricBeat/MissActualConsensus Estimate
Q4 RevenueMiss$1.60 bln$1.65 bln (10 Analysts)
Q4 EPS$3.24
Q4 Adjusted Net IncomeBeat$1 bln$982.40 mln (8 Analysts)
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 For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com. (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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