Financial Exchanges & Data Q3 Earnings: Moody's (NYSE:MCO) Simply the Best

Looking back on financial exchanges & data stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Moody's (NYSE:MCO) and its peers.

Financial exchanges and data providers operate trading platforms and sell market information. They enjoy relatively stable revenue from trading fees and subscriptions, increasing demand for data analytics, and expansion opportunities in emerging markets. Challenges include regulatory oversight of market structure, competition from alternative trading venues, and substantial technology investments needed to maintain low-latency trading infrastructure and data security.

The 10 financial exchanges & data stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 1%.

Thankfully, share prices of the companies have been resilient as they are up 7.8% on average since the latest earnings results.

Best Q3: Moody's (NYSE:MCO)

Founded in 1900 during America's railroad boom when investors needed reliable information on bond risks, Moody's (NYSE:MCO) provides credit ratings, risk assessment tools, and analytical solutions that help organizations evaluate financial risks and make informed investment decisions.

Moody's reported revenues of $2.01 billion, up 10.7% year on year. This print exceeded analysts’ expectations by 2.4%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ Investor Services segment estimates and an impressive beat of analysts’ EBITDA estimates.

Moody's pulled off the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 11.1% since reporting and currently trades at $538.92.

We think Moody's is a good business, but is it a buy today? Read our full report here, it’s free.

S&P Global (NYSE:SPGI)

Tracing its roots back to 1860 when it published the first railroad industry manual, S&P Global (NYSE:SPGI) provides credit ratings, market intelligence, commodity data, automotive analytics, and financial indices that help investors and businesses make decisions.

S&P Global reported revenues of $3.89 billion, up 8.8% year on year, outperforming analysts’ expectations by 1.3%. The business had a strong quarter with a solid beat of analysts’ Ratings segment estimates and an impressive beat of analysts’ EBITDA estimates.

The market seems happy with the results as the stock is up 16.1% since reporting. It currently trades at $549.

Is now the time to buy S&P Global? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Tradeweb Markets (NASDAQ:TW)

Founded in 1996 as one of the pioneers in electronic bond trading, Tradeweb Markets (NASDAQ:TW) builds and operates electronic marketplaces that connect financial institutions for trading across rates, credit, equities, and money markets.

Tradeweb Markets reported revenues of $508.6 million, up 13.3% year on year, exceeding analysts’ expectations by 1%. Still, it was a slower quarter as it posted a significant miss of analysts’ EPS estimates and transaction volumes in line with analysts’ estimates.

The stock is flat since the results and currently trades at $106.30.

Read our full analysis of Tradeweb Markets’s results here.

FactSet (NYSE:FDS)

Founded in 1978 when financial data was still primarily delivered through paper reports, FactSet (NYSE:FDS) provides financial data, analytics, and technology solutions that investment professionals use to research, analyze, and manage their portfolios.

FactSet reported revenues of $607.6 million, up 6.9% year on year. This result beat analysts’ expectations by 1.3%. Taking a step back, it was a mixed quarter as it also produced a solid beat of analysts’ EBITDA estimates but full-year EPS guidance slightly missing analysts’ expectations.

The stock is down 2.5% since reporting and currently trades at $288.60.

Read our full, actionable report on FactSet here, it’s free.

CME Group (NASDAQ:CME)

Born from the Chicago Mercantile Exchange founded in 1898 as a butter and egg trading venue, CME Group (NASDAQ:CME) operates the world's largest derivatives marketplace where traders can buy and sell futures and options contracts across interest rates, equities, currencies, commodities, and more.

CME Group reported revenues of $1.54 billion, down 3% year on year. This number met analysts’ expectations. More broadly, it was a mixed quarter as it also recorded a narrow beat of analysts’ EBITDA estimates but revenue in line with analysts’ estimates.

CME Group had the slowest revenue growth among its peers. The stock is up 4.1% since reporting and currently trades at $279.70.

Read our full, actionable report on CME Group here, it’s free.

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