CME Posts Mixed Q3 Results Amid Accelerating Geopolitical Uncertainty

CME Group Inc CME reported Q3 FY23 revenue of $1.338 billion, slightly missing the consensus of $1.342 billion.

Clearing and transaction fees revenue totaled $1.09 billion (from $998.6 million a year ago), with an average rate per contract of $0.707. 

Market data and information services revenue stood at $167.6 million (vs. $154.3 million the prior year).

Average daily volume (ADV) stood at 22.3 million contracts, with non-U.S. ADV contracts reaching 6.5 million (+7% Y/Y), including 16% Y/Y growth in interest rates and double-digit growth across agricultural, energy and metals products.

Adjusted EPS of $2.25 surpassed the estimate of $2.22.

As of September 30, 2023, CME had around $2.5 billion in cash and $3.4 billion of debt.

"CME Group delivered its ninth consecutive quarter of double-digit growth in adjusted earnings per share and a 9% increase in revenue as market participants continued turning to our markets to mitigate their business risks amid accelerating geopolitical uncertainty. This was a particularly strong quarter, with interest rate volume increasing 6%, driven by an 18% rise in Treasury futures ADV and records in our Ultra 10-Year and Ultra T-Bond futures. We also generated significant growth across agricultural, energy and options products," said Terry Duffy, Chairman and Chief Executive Officer.

Also Read: CME Group Scoring High With Aluminum Futures Contracts: Here's Details

Price Action: CME shares are trading lower by 0.84% at $212.44 premarket on the last check Wednesday.