CME Group CME reported fourth-quarter 2024 adjusted earnings per share of $2.52, which beat the Zacks Consensus Estimate by 3.3%. The bottom line increased 6.3% year over year. 

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Quarterly results benefited from improving revenues, driven by higher clearing and transaction fees as well as market data and information services fees. 

Performance in Detail

CME Group’s revenues of $1.5 billion increased 6% year over year. The year-over-year increase was primarily due to higher clearing and transaction fees (up 4% year over year), market data and information services (up 8.6% year over year) and other (27.2% year over year). The top line beat the Zacks Consensus Estimate by 1.3%.
 

CME Group Inc. Price, Consensus and EPS Surprise

CME Group Inc. price-consensus-eps-surprise-chart | CME Group Inc. Quote

Total expenses rose 0.3% year over year to $578.2 million, attributable to higher compensation and benefits, technology, and licensing and other fee agreements. It exceeded our estimate of $512.9 million.

Operating income increased 9.7% from the prior-year quarter to $947.1 million. Our estimate was $984.3 million.

ADV was 25.5 million contracts, including non-U.S. ADV of 7.6 million contracts. The total average rate per contract was 70.1 cents.

Financial Update

As of Dec. 31, 2024, CME Group had $3.1 billion of cash and marketable securities, down 0.5% from the 2023-end level. 

As of Dec. 31, 2024, long-term debt was $2.7 billion, down 21.8% from 2023-end. 

As of Dec. 31, 2024, CME had shareholders' equity worth $26.5 billion, down 0.9% from the end of 2023.

Capital Deployment

CME Group declared dividends of $3.8 billion in 2024, including the annual variable dividend of $2.1 billion. It has returned over $28 billion to shareholders in the form of dividends since the implementation of the variable dividend policy in early 2012.

On Feb. 6, 2025, the company declared a first-quarter dividend of $1.25 per share, a 9% increase from the prior level of $1.15 per share.

Zacks Rank

CME currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Industry Players

Nasdaq, Inc. NDAQ reported fourth-quarter 2024 adjusted earnings per share of 76 cents, beating the Zacks Consensus Estimate by 1.3%. The bottom line improved 5% year over year. Nasdaq’s net revenues of $1.2 billion increased 10% year over year. The top line missed the Zacks Consensus Estimate by 0.1%.

Annualized Recurring Revenue increased 7% year over year. The company’s operating margin of 55% remained flat year over year.

The Nasdaq stock market welcomed 162 new company listings in the fourth quarter of 2024, including 66 initial public offerings. The number of listed companies was 4,075 at the end of the quarter.

Intercontinental Exchange ICE reported fourth-quarter 2024 adjusted earnings per share of $1.52, which beat the Zacks Consensus Estimate by 2%. The bottom line increased 14.3% on a year-over-year basis. Intercontinental’s net revenues were $2.3 billion, down 12.9% year over year. Including exchange net revenues of $1.2 billion, the top line increased 6%. The top line beat the Zacks Consensus Estimate by 0.2%.

Adjusted operating income rose 8.1% year over year to $1.4 billion. Our estimate was $1.3 billion. Adjusted operating margin expanded 100 bps year over year to 58%. Our estimate was 45.8%.

Exchange recurring revenues are expected to grow in low single digits. Fixed Income & Data Services recurring revenues are expected to grow in mid-single digits, while Mortgage Technology revenues are expected to grow in low-to-mid single digits.

GAAP operating expenses are expected in the range of $4.915-$4.965 billion. Adjusted operating expenses are projected to be between $3.915 billion and $3.965 billion.

MarketAxess Holdings Inc. MKTX reported fourth-quarter 2024 earnings per share of $1.73, which outpaced the Zacks Consensus Estimate by 1.8%. The bottom line decreased 6% year over year. Total revenues advanced 3% year over year to $202 million. However, the top line missed the consensus mark by 0.5%.

MKTX’s operating income of $80 million advanced 4% year over year but missed our estimate of $82 million. EBITDA fell 2% year over year to $97 million, while EBITDA margin deteriorated 220 bps year over year to 47.8%.
Services revenues, which comprise Information Services, Post-Trade Services and Technology Services, are anticipated to witness mid-single-digit growth in 2025.  Total expenses are estimated between $505 million and $525 million for 2025. Capital expenditure is projected between $65 million and $70 million, while the effective tax rate is expected to be between 23.5% and 24.5%.

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