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Cboe Global (CBOE) Q2 Earnings Miss, Revenues Beat, View Up
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Cboe Global Markets, Inc.’s (CBOE - Free Report) second-quarter 2022 adjusted earnings of $1.67 per share missed the Zacks Consensus Estimate by 1.8%. However, the bottom line increased 21% year over year.
The quarter witnessed an increase in clearing fees and access and capacity fees, growth in European equities and clearing, and higher net transaction and clearing fees.
Cboe Global Markets, Inc. Price, Consensus and EPS Surprise
Total revenues came in at $424.1 million and beat the Zacks Consensus Estimate by 0.4%. The top line increased 21% year over year, driven by increases in net transaction and clearing fees and access and capacity fees.
Options revenues increased 32% year over year to $235.3 million due to double-digit increases in net transaction and clearing fees, access and capacity fees, and market data.
North American Equities revenues increased 4% year over year to $92.7 million, primarily on higher access and capacity fees and transaction and clearing fees.
Futures revenues of $29.6 million were up 8% year over year due to increases in net transaction and clearing fees, access and capacity fees, and market data.
Europe and Asia Pacific revenues rose 20% year over year to $49.9 million, reflecting growth in European equities and clearing, and the addition of Cboe Asia Pacific in July 2021, which contributed $8.2 million in net revenues.
Global FX revenues increased 20% to $16.6 million, attributable to higher net transaction and clearing fees.
Total adjusted operating expenses increased 22% year over year to $157 million, primarily due to the acquisitions of Cboe Asia Pacific, ErisX, and NEO, as well as an increase in salaries, wages, and bonuses resulting in higher compensation and benefits.
Adjusted operating income increased 20% year over year to $267.1 million.
Adjusted operating margin in the quarter under review contracted 40 basis points (bps) to 63%.
Adjusted EBITDA margin of 64.7% contracted 190 bps.
Financial Update
As of Jun 30, 2022, CBOE Global had cash and cash equivalents of $373.3 million, up 9.2% from the figure at 2021 end. Total assets were $7.5 billion, up 9.7% from the level at 2021 end.
At the end of the quarter, the long-term debt was $2 billion, up 50.8% year over year.
Total shareholders’ equity was $3.3 billion at the end of the reported quarter, down 9.5% from the value on Dec 31, 2021.
Share Repurchase and Dividend Update
Cboe Global paid out cash dividends worth $51.2 million and bought back shares worth $15.6 million in the reported quarter. Cboe Global had $233.3 million remaining under its existing share repurchase authorization as of Jun 30.
2022 Guidance Upped
Cboe Global expects total organic net revenue growth in the range of 9% to 11%, up from 5% to7% guided earlier.
CBOE expects organic net revenues from Data and Access Solutions to increase approximately 10% to 13%, up from the earlier guidance of 8% to 11%.
CBOE expects adjusted operating expenses in the range of $659 million to $667 million, up from $617 to $625 million guided earlier.
It expects depreciation and amortization expenses for 2022 in the range of $40 to $44 million, excluding the expected amortization of acquired intangible assets.
The company expects the effective tax rate on adjusted earnings for 2022 in the range of 27.5% to 29.5%.
Cboe Global expects capital expenditures in the range of $47 million to $52 million.
Of the industry players that have reported second-quarter results so far, Nasdaq Inc. (NDAQ - Free Report) , CME Group (CME - Free Report) and MarketAxess Holdings (MKTX - Free Report) beat the respective Zacks Consensus Estimate for earnings.
Nasdaq reported second-quarter 2022 adjusted earnings per share of $2.07, beating the Zacks Consensus Estimate of $1.91 by 8.4%. The bottom line improved 8.9% year over year. Nasdaq’s revenues of $893 million increased 5.6% year over year. The top line beat the Zacks Consensus Estimate by 1.1%. The operating margin of 54% remained unchanged year over year.
CME Group’s second-quarter 2022 adjusted earnings per share of $1.97 beat the Zacks Consensus Estimate of $1.92 and increased 20.1% year over year due to higher clearing and transaction fees and market data and information services. Revenues of $1.2 billion increased 4.9% year over year and beat the Zacks Consensus Estimate by 5%. ADV was 23.1 million contracts, including non-U.S. ADV of 6.3 million contracts, led by 40% growth in Latin America, 36% in Asia and 15% in EMEA. This marks the third-highest quarterly average daily volume.
MarketAxess’ second-quarter 2022 earnings per share of $1.78 outpaced the Zacks Consensus Estimate by 4.1% and improved 1% year over year. Total revenues of $182 million increased 3% year over year but fell short of the consensus mark by 1.2%. U.S. high-grade trading volume of MarketAxess increased 11% year over year. Emerging markets' trading volume rose 11.5% year over year.
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Cboe Global (CBOE) Q2 Earnings Miss, Revenues Beat, View Up
Cboe Global Markets, Inc.’s (CBOE - Free Report) second-quarter 2022 adjusted earnings of $1.67 per share missed the Zacks Consensus Estimate by 1.8%. However, the bottom line increased 21% year over year.
The quarter witnessed an increase in clearing fees and access and capacity fees, growth in European equities and clearing, and higher net transaction and clearing fees.
Cboe Global Markets, Inc. Price, Consensus and EPS Surprise
Cboe Global Markets, Inc. price-consensus-eps-surprise-chart | Cboe Global Markets, Inc. Quote
Operational Details
Total revenues came in at $424.1 million and beat the Zacks Consensus Estimate by 0.4%. The top line increased 21% year over year, driven by increases in net transaction and clearing fees and access and capacity fees.
Options revenues increased 32% year over year to $235.3 million due to double-digit increases in net transaction and clearing fees, access and capacity fees, and market data.
North American Equities revenues increased 4% year over year to $92.7 million, primarily on higher access and capacity fees and transaction and clearing fees.
Futures revenues of $29.6 million were up 8% year over year due to increases in net transaction and clearing fees, access and capacity fees, and market data.
Europe and Asia Pacific revenues rose 20% year over year to $49.9 million, reflecting growth in European equities and clearing, and the addition of Cboe Asia Pacific in July 2021, which contributed $8.2 million in net revenues.
Global FX revenues increased 20% to $16.6 million, attributable to higher net transaction and clearing fees.
Total adjusted operating expenses increased 22% year over year to $157 million, primarily due to the acquisitions of Cboe Asia Pacific, ErisX, and NEO, as well as an increase in salaries, wages, and bonuses resulting in higher compensation and benefits.
Adjusted operating income increased 20% year over year to $267.1 million.
Adjusted operating margin in the quarter under review contracted 40 basis points (bps) to 63%.
Adjusted EBITDA margin of 64.7% contracted 190 bps.
Financial Update
As of Jun 30, 2022, CBOE Global had cash and cash equivalents of $373.3 million, up 9.2% from the figure at 2021 end. Total assets were $7.5 billion, up 9.7% from the level at 2021 end.
At the end of the quarter, the long-term debt was $2 billion, up 50.8% year over year.
Total shareholders’ equity was $3.3 billion at the end of the reported quarter, down 9.5% from the value on Dec 31, 2021.
Share Repurchase and Dividend Update
Cboe Global paid out cash dividends worth $51.2 million and bought back shares worth $15.6 million in the reported quarter. Cboe Global had $233.3 million remaining under its existing share repurchase authorization as of Jun 30.
2022 Guidance Upped
Cboe Global expects total organic net revenue growth in the range of 9% to 11%, up from 5% to7% guided earlier.
CBOE expects organic net revenues from Data and Access Solutions to increase approximately 10% to 13%, up from the earlier guidance of 8% to 11%.
CBOE expects adjusted operating expenses in the range of $659 million to $667 million, up from $617 to $625 million guided earlier.
It expects depreciation and amortization expenses for 2022 in the range of $40 to $44 million, excluding the expected amortization of acquired intangible assets.
The company expects the effective tax rate on adjusted earnings for 2022 in the range of 27.5% to 29.5%.
Cboe Global expects capital expenditures in the range of $47 million to $52 million.
Zacks Rank
Cboe Global currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Securities and Exchanges
Of the industry players that have reported second-quarter results so far, Nasdaq Inc. (NDAQ - Free Report) , CME Group (CME - Free Report) and MarketAxess Holdings (MKTX - Free Report) beat the respective Zacks Consensus Estimate for earnings.
Nasdaq reported second-quarter 2022 adjusted earnings per share of $2.07, beating the Zacks Consensus Estimate of $1.91 by 8.4%. The bottom line improved 8.9% year over year. Nasdaq’s revenues of $893 million increased 5.6% year over year. The top line beat the Zacks Consensus Estimate by 1.1%. The operating margin of 54% remained unchanged year over year.
CME Group’s second-quarter 2022 adjusted earnings per share of $1.97 beat the Zacks Consensus Estimate of $1.92 and increased 20.1% year over year due to higher clearing and transaction fees and market data and information services. Revenues of $1.2 billion increased 4.9% year over year and beat the Zacks Consensus Estimate by 5%. ADV was 23.1 million contracts, including non-U.S. ADV of 6.3 million contracts, led by 40% growth in Latin America, 36% in Asia and 15% in EMEA. This marks the third-highest quarterly average daily volume.
MarketAxess’ second-quarter 2022 earnings per share of $1.78 outpaced the Zacks Consensus Estimate by 4.1% and improved 1% year over year. Total revenues of $182 million increased 3% year over year but fell short of the consensus mark by 1.2%. U.S. high-grade trading volume of MarketAxess increased 11% year over year. Emerging markets' trading volume rose 11.5% year over year.