We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Cboe Global's (CBOE) Q1 Earnings Beat Estimates, Down Y/Y
Read MoreHide Full Article
Cboe Global Markets, Inc.’s (CBOE - Free Report) first-quarter 2019 adjusted earnings of $1.11 per share beat the Zacks Consensus Estimate of 99 cents by 12.1%, mainly on the back of lower expenses. However, the bottom line declined 24.3% year over year. The performance was partially offset by weaker revenues.
Operational Details
Total revenues came in at $281 million, surpassing the Zacks Consensus Estimate by 0.7%. However, the top line was down nearly 14.6% year over year due to soft segmental trading volumes.
Average daily volume for Options fell 22% year over year while the revenue per contract or RPC contracted 7% in the first quarter.
Although total RPC for U.S. Futures inched up 0.7% year over year, the company’s ADV dropped 37.2% year over year.
Total operating expenses decreased 16.7% year over year to $134 million on the back of lower compensation and benefits owing to reduced incentive compensation.
Adjusted operating margin for the quarter under review was flat at 66.5%, reflecting improved costs.
Financial Update
As of Mar 31, 2019, CBOE Global had cash and cash equivalents of $346.2 million, up 25.8% from the figure at 2018 end. Total assets were $5.3 billion in the first quarter, rising 0.2% from the level at 2018 end.
At the end of the first quarter, long-term debt of the company stands at $916 million, up 0.1% year over year.
Total shareholders’ equity was $3.2 billion at the end of the reported quarter, up 1.4% compared with Dec 31, 2018’s value.
Share Repurchase and Dividend Update
The company paid cash dividends worth $34.8 million or 31 cents per share in the first quarter.
For the first three months of 2019, the company bought back shares worth $35 million. As of Mar 31, 2019, the company has around $171.1 million left under its current share repurchase authorization.
Fiscal 2019 Outlook
Adjusted operating expenses are now expected between $415 million and $423 million, down from the earlier guidance of $420-$428 million.
Depreciation and amortization expenses are still anticipated between $35 million and $40 million excluding the amortization of acquired intangible assets of $138 million.
Capital expenditures are now projected in the $50-$55 million band.
The effective tax rate on adjusted earnings for 2019 is likely to be within 27-29%.
Among other players from the same space, which already reported first-quarter earnings so far, the bottom-line figures of CME Group Inc. (CME - Free Report) , Nasdaq, Inc. (NDAQ - Free Report) and Intercontinental Exchange, Inc. (ICE - Free Report) beat the respective Zacks Consensus Estimate.
Will you retire a millionaire?
One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”
Image: Bigstock
Cboe Global's (CBOE) Q1 Earnings Beat Estimates, Down Y/Y
Cboe Global Markets, Inc.’s (CBOE - Free Report) first-quarter 2019 adjusted earnings of $1.11 per share beat the Zacks Consensus Estimate of 99 cents by 12.1%, mainly on the back of lower expenses. However, the bottom line declined 24.3% year over year. The performance was partially offset by weaker revenues.
Operational Details
Total revenues came in at $281 million, surpassing the Zacks Consensus Estimate by 0.7%. However, the top line was down nearly 14.6% year over year due to soft segmental trading volumes.
Average daily volume for Options fell 22% year over year while the revenue per contract or RPC contracted 7% in the first quarter.
Although total RPC for U.S. Futures inched up 0.7% year over year, the company’s ADV dropped 37.2% year over year.
Total operating expenses decreased 16.7% year over year to $134 million on the back of lower compensation and benefits owing to reduced incentive compensation.
Adjusted operating margin for the quarter under review was flat at 66.5%, reflecting improved costs.
Financial Update
As of Mar 31, 2019, CBOE Global had cash and cash equivalents of $346.2 million, up 25.8% from the figure at 2018 end. Total assets were $5.3 billion in the first quarter, rising 0.2% from the level at 2018 end.
At the end of the first quarter, long-term debt of the company stands at $916 million, up 0.1% year over year.
Total shareholders’ equity was $3.2 billion at the end of the reported quarter, up 1.4% compared with Dec 31, 2018’s value.
Share Repurchase and Dividend Update
The company paid cash dividends worth $34.8 million or 31 cents per share in the first quarter.
For the first three months of 2019, the company bought back shares worth $35 million. As of Mar 31, 2019, the company has around $171.1 million left under its current share repurchase authorization.
Fiscal 2019 Outlook
Adjusted operating expenses are now expected between $415 million and $423 million, down from the earlier guidance of $420-$428 million.
Depreciation and amortization expenses are still anticipated between $35 million and $40 million excluding the amortization of acquired intangible assets of $138 million.
Capital expenditures are now projected in the $50-$55 million band.
The effective tax rate on adjusted earnings for 2019 is likely to be within 27-29%.
Zacks Rank and Performance of Other Players
Cboe Global has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among other players from the same space, which already reported first-quarter earnings so far, the bottom-line figures of CME Group Inc. (CME - Free Report) , Nasdaq, Inc. (NDAQ - Free Report) and Intercontinental Exchange, Inc. (ICE - Free Report) beat the respective Zacks Consensus Estimate.
Will you retire a millionaire?
One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”
Click to get it free >>