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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 third-quarter 2021 results on Oct 29, before the opening bell. The company delivered an earnings surprise of 2.22%  in the last reported quarter.

Factors to Consider

CBOE Global’s third-quarter performance is likely to have benefited from increased volatility, which drove trading volume and continued growth in recurring non-transaction revenues as well as the contribution from acquisitions.

Transaction fees and clearing fees are likely to have benefited from improved trading volumes in U.S cash equities and multi-list options.  Its strong market position and a global reach with strength in its proprietary products, primarily SPX options, VIX options and VIX futures are likely to have provided an additional upside.

The Zacks Consensus Estimate for third-quarter transaction fees is pegged at $430 million.

Market data revenues are likely to have been aided by the Bats, MATCHNow, BIDS Trading, Hanweck and FT Options acquisitions, improved Cboe Information Solutions, and a comprehensive suite of data solutions, analytics and indices. The Zacks Consensus Estimate for third-quarter market data fees and access fees is pegged at $66 million and $69 million, indicating growth of 10% and 13.1%, respectively, from the prior-year quarter reported figure.

Expenses are likely to have increased given several ongoing investments in systems hardware and software.

Estimate Picture

The Zacks Consensus Estimate for third-quarter revenues is pegged at $364.8 million, indicating an increase of 24.9% from the year-ago reported figure.

Cboe Global estimates quarterly interest expense between $11.5 million and $12 million,

The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $1.43, indicating an increase of 28.8% 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 $1.43 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 2.

Stocks to Consider

Some stocks worth considering from the finance sector with a perfect mix of elements to surpass estimates in their upcoming quarterly releases are as follows:

Moody's Corporation (MCO - Free Report) has an Earnings ESP of +0.94% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Equity Residential (EQR - Free Report) has an Earnings ESP of +1.19% and a Zacks Rank of 3, at present.

Capital One Financial (COF - Free Report) has an Earnings ESP of +4.66% and a Zacks Rank #2.

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