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What's in Store for Cboe Global (CBOE) This Earnings Season?
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Cboe Global Markets (CBOE - Free Report) is slated to report fourth-quarter 2020 results on Feb 5, before the opening bell. The company delivered an earnings surprise in all the three reported quarters of 2020.
Factors to Consider
CBOE Global’s fourth-quarter performance is likely to have benefited from higher market data fees and access and capacity fees, partially offset by lower transactions fees and regulatory fees. The Zacks Consensus Estimate for fourth-quarter market data fees and access fees is pegged at $60 million and $62 million, indicating growth of 11.1% and 8.8%, respectively, from the prior-year quarter reported figure.
Cboe Global estimated underlying organic growth for proprietary market data and access capacity fee in 2020 to be in mid to high-single digits, up from mid-single digits guided earlier. Non-transaction fees are expected to grow in low double-digits, up from mid to high-single digits guided earlier. Market data revenues are likely to have been aided by the Bats, Hanweck and FT Options acquisition, improved Cboe Information Solutions, and the comprehensive suite of data solutions, analytics and indices.
In 2020, the company estimates to achieve $85 million of run rate synergies from its Bats Global buyout. The company expects to achieve the synergies through its shift to a single proprietary trading platform and by optimizing the expense structure of the combined entity.
Fourth-quarter results are likely to reflect higher trading volumes. Cboe Global reported sturdy volumes for full-year 2020. Options volumes were at a record high of more than 2.5 billion contracts while U.S. equities volume hit a record of more 436 billion shares. Options ADV increased 38%. U.S. Equities ADV improved 50% while Global FX ADNV increased 7% year over year.
However, transaction fees are expected to have been lower on a decline in trading volumes in Options, U.S. The consensus mark for fourth-quarter transaction fees is pegged at $287 million, indicating a decline of 27.2% from the prior-year quarter reported figure.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $300.9 million, indicating an increase 7.4% from the year-ago reported figure.
With respect to revenues per contract (RPC), Cboe Global estimates fourth-quarter Options RPC to be down 2% to 3% from the two months ended Nov 30 average, largely due to 1-2% lower RPC projected for multi-listed options for December. RPC for Futures is expected to be in line with the two-month ended Nov 30 average.
Moreover, CBOE Global is likely to have benefited from strong proprietary products, particularly SPX index options and VIX Futures.
The company estimates adjusted operating expenses in 2020 to be in the range of $415 to $420 million, down from the previous guidance of $436 to $444 million, primarily due to lower compensation costs, including incentive-based compensation, professional fees and travel and marketing expenses.
The Zacks Consensus Estimate for fourth-quarter earnings per share is pegged at $1.22, indicating an increase of 0.8% from the prior-year quarter reported figure.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for CBOE Global this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: CBOE Global has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.22 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: CBOE Global carries a Zacks Rank of 3.
Stocks to Consider
Some stocks worth considering from the finance sector with the perfect mix of elements to surpass estimates in the upcoming quarterly releases are as follows:
Aflac (AFL - Free Report) has an Earnings ESP of +0.64% and a Zacks Rank of 3.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +5.72% and a Zacks Rank #3.
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What's in Store for Cboe Global (CBOE) This Earnings Season?
Cboe Global Markets (CBOE - Free Report) is slated to report fourth-quarter 2020 results on Feb 5, before the opening bell. The company delivered an earnings surprise in all the three reported quarters of 2020.
Factors to Consider
CBOE Global’s fourth-quarter performance is likely to have benefited from higher market data fees and access and capacity fees, partially offset by lower transactions fees and regulatory fees. The Zacks Consensus Estimate for fourth-quarter market data fees and access fees is pegged at $60 million and $62 million, indicating growth of 11.1% and 8.8%, respectively, from the prior-year quarter reported figure.
Cboe Global estimated underlying organic growth for proprietary market data and access capacity fee in 2020 to be in mid to high-single digits, up from mid-single digits guided earlier. Non-transaction fees are expected to grow in low double-digits, up from mid to high-single digits guided earlier.
Market data revenues are likely to have been aided by the Bats, Hanweck and FT Options acquisition, improved Cboe Information Solutions, and the comprehensive suite of data solutions, analytics and indices.
In 2020, the company estimates to achieve $85 million of run rate synergies from its Bats Global buyout. The company expects to achieve the synergies through its shift to a single proprietary trading platform and by optimizing the expense structure of the combined entity.
Fourth-quarter results are likely to reflect higher trading volumes. Cboe Global reported sturdy volumes for full-year 2020. Options volumes were at a record high of more than 2.5 billion contracts while U.S. equities volume hit a record of more 436 billion shares. Options ADV increased 38%. U.S. Equities ADV improved 50% while Global FX ADNV increased 7% year over year.
However, transaction fees are expected to have been lower on a decline in trading volumes in Options, U.S. The consensus mark for fourth-quarter transaction fees is pegged at $287 million, indicating a decline of 27.2% from the prior-year quarter reported figure.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $300.9 million, indicating an increase 7.4% from the year-ago reported figure.
With respect to revenues per contract (RPC), Cboe Global estimates fourth-quarter Options RPC to be down 2% to 3% from the two months ended Nov 30 average, largely due to 1-2% lower RPC projected for multi-listed options for December. RPC for Futures is expected to be in line with the two-month ended Nov 30 average.
Moreover, CBOE Global is likely to have benefited from strong proprietary products, particularly SPX index options and VIX Futures.
The company estimates adjusted operating expenses in 2020 to be in the range of $415 to $420 million, down from the previous guidance of $436 to $444 million, primarily due to lower compensation costs, including incentive-based compensation, professional fees and travel and marketing expenses.
The Zacks Consensus Estimate for fourth-quarter earnings per share is pegged at $1.22, indicating an increase of 0.8% from the prior-year quarter reported figure.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for CBOE Global this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: CBOE Global has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.22 per share. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Cboe Global Markets, Inc. Price and EPS Surprise
Cboe Global Markets, Inc. price-eps-surprise | Cboe Global Markets, Inc. Quote
Zacks Rank: CBOE Global carries a Zacks Rank of 3.
Stocks to Consider
Some stocks worth considering from the finance sector with the perfect mix of elements to surpass estimates in the upcoming quarterly releases are as follows:
American International (AIG - Free Report) has an Earnings ESP of +0.85% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Aflac (AFL - Free Report) has an Earnings ESP of +0.64% and a Zacks Rank of 3.
The Allstate Corporation (ALL - Free Report) has an Earnings ESP of +5.72% and a Zacks Rank #3.
Legal Marijuana: An Investor’s Dream
Imagine getting in early on a young industry primed to skyrocket from $17.7 billion in 2019 to an expected $73.6 billion by 2027.
Although marijuana stocks did better as the pandemic took hold than the market as a whole, they’ve been pushed down. This is exactly the right time to get in on selected strong companies at a fraction of their value before COVID struck. Zacks’ Special Report, Marijuana Moneymakers, reveals 10 exciting tickers for urgent consideration.
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