CME Delivers Another Strong Quarter as Volatility Drives High Trading Volume in Third Quarter

Wide-moat CME group reported solid third-quarter earnings that were broadly in line with our expectations as it continues to benefit from volatile markets in 2022. Revenue increased 10.6% from last year to $1.23 billion, though was effectively flat sequentially. Net income fell from $926.5 million last year to $679.6 million as the company laps a $430 million one-time gain during last year’s quarter. As we incorporate these results, we do not expect to make any material changes to our $220 fair value estimate for CME.