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What's in Store for Cboe Global (CBOE) This Earnings Season?

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Cboe Global Markets, Inc. (CBOE - Free Report) is slated to report first-quarter 2020 results on Apr 30, before the opening bell. The company delivered an earnings surprise in all the three reported quarters of 2020 while missing in one.

Factors to Consider

CBOE Global’s first-quarter performance is likely to have benefited from its strategy to leverage product innovation and superior technology, expand customer base, and diversify business mix with recurring revenues.

Transaction fees and clearing fees are likely to have benefited from improved trading volumes in U.S cash equities, and multi list options.  Strong market position and a global reach with strength in its proprietary products, primarily SPX options, VIX options and VIX futures likely have provided additional upside.
The Zacks Consensus Estimate for first-quarter transaction fees is pegged at $234 million.

Market data revenues are likely to have been aided by the Bats, Hanweck and FT Options acquisitions, improved Cboe Information Solutions, and a comprehensive suite of data solutions, analytics and indices. The Zacks Consensus Estimate for first-quarter market data fees and access fees is pegged at $58 million and $63 million, indicating growth of 3.6% and 12.5%, respectively, from the prior-year quarter reported figure.

First-quarter results are likely to reflect higher trading volumes. First-quarter ADV of 12.9 million contracts per day was up 16.9% year over year courtesy of solid performance in Options, partly offset by lower Futures volume. Though U.S. Equities Global Forex increased, European Equities declined.  There were 61 trading days in the first quarter of this year.

Total contracts for the first quarter were 788.9 million, up 15% year over year. Of this, Options improved 16.3% to 773.3 million, while Futures decreased 23.9% to 15.6 million. While Options ADV was 12.7 million, Futures ADV was 0.3 million.

Total volumes of U.S. Equities were 134.3 billion shares, up 18% year over year. European Equities reflected a decline of 18.7% year over year to €473.3 billion. Meanwhile, Global FX decreased 15.8% to $2.3 trillion. Total volumes of Canadian Equities traded were 4.4 billion while U.S. Equities – Off-Exchange Matched volumes were 6.1 billion shares.

Estimate Picture

The Zacks Consensus Estimate for first-quarter revenues is pegged at $350.5 million, indicating a decrease of 2.2% from the year-ago reported figure.
Expenses are likely to have increased given several ongoing investments in systems hardware and software.

Cboe Global estimates quarterly interest expense between $12 million and $13 million.

The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $1.39, indicating a decline of 15.8% from the prior-year quarter reported figure.

What the Zacks Model Say

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 $1.39 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 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 their upcoming quarterly releases are as follows:

Intercontinental Exchange (ICE - Free Report) has an Earnings ESP of +0.77% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

AMERISAFE (AMSF - Free Report) has an Earnings ESP of +0.46% and a Zacks Rank #3.

Aon (AON - Free Report) has an Earnings ESP of +0.79 and a Zacks Rank of 3.

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