Overview

* TMX Group ( TMXXF ) Q2 revenue grows 15%, beating analyst expectations, per LSEG data

* Adjusted EPS for Q2 rises 21%, beating consensus, per LSEG data

* Company announces 10% dividend increase, fifth in three years

Outlook

* TMX Group ( TMXXF ) remains committed to executing long-term growth strategy

Result Drivers

* DERIVATIVES TRADING - Revenue from derivatives trading and clearing rose 33% due to strong volumes

* EQUITIES AND FIXED INCOME - Equities and fixed income trading revenue increased 18%, driven by higher trading volumes

* FX IMPACT - Favorable FX impact from stronger USD and GBP relative to CAD contributed to revenue growth

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat C$421.70 C$415.80

Revenue mln mln (6

Analysts

)

Q2 Beat C$0.52 C$0.49

Adjusted (8

EPS Analysts

)

Q2 EPS C$0.26

Q2 C$229.60

Operatin mln

g

Expenses

Q2 C$192.10

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the financial & commodity market operators & service providers peer group is "buy."

* Wall Street's median 12-month price target for TMX Group Ltd ( TMXXF ) is C$58.50, about 3.9% above its July 30 closing price of C$56.23

* The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 27 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)