Why CME Group Stock Was a Winner on Wednesday

CME Group (CME 3.74%) The good news broke Wednesday morning, and investors rewarded the company by trading shares that day. Shares have risen nearly 4% since fourth-quarter results were released before markets opened. This is slightly more than a 1% increase. S&P 500 index.

4 quarter double beat

During the period, CME, which owns and operates a series of derivatives markets, posted revenue of $1.44 billion. This is up from $1.21 billion earned in the fourth quarter of 2022. All in all, CME had net non-GAAP (adjusted) earnings of approximately $865 million, or $2.37 per share. This is significantly higher than this year’s $689 million. Previous period.

Both headline figures topped analysts’ consensus estimates. On average, experts tracking CME modeled adjusted earnings per share of $2.28 and revenue of $1.42 billion.

Higher volume was the main driver of top and bottom line growth. CME said in its earnings call that average daily trading volume hit a new annual record in 2023. In particular, the company benefited from a sharp increase in U.S. Treasury futures activity in the fourth quarter.

share the wealth

CME also hasn’t been shy about returning some of its increased profits to shareholders. It pulled the dividend hike lever last week, raising the quarterly payout to $1.15 per share. The company also pays regular variable dividends every year. Announced in December 2023, this amount was $5.25 per share.