CME Earnings: Strong Trading Volume in Commodity Futures Drives Average Pricing and Revenue Higher

Wide-moat-rated CME group reported solid earnings that were in line with our expectations as the company benefited from strong trading volume in its commodity futures. CME’s net revenue increased 9% from last year but decreased 1.6% from a strong second quarter to $1.34 billion. Meanwhile, the company’s earnings per share increased 10.2% to $2.06. As we incorporate these results, we do not plan to materially alter our $215 fair value estimate, and we see shares as roughly fairly valued.