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Cboe Global Markets, Inc.’s (CBOE - Free Report) second-quarter 2019 adjusted earnings of $1.13 per share beat the Zacks Consensus Estimate by 5.6% on the back of its Options segment. Moreover, the bottom line increased 7.6% year over year.
Operational Details
Total revenues came in at $283.2 million, missing the Zacks Consensus Estimate by 0.3%. Moreover, the top line dipped nearly 0.1% due to lower trading volume across all business segments apart from the Options segment.
Average daily volume for Options inched up 2% year over year while the revenue per contract or RPC slipped 1% in the second quarter.
Total RPC for U.S. Futures was up 7% year over year.
Total operating expenses increased 2.3% year over year to $158 million. Adjusted operating margin for the quarter under review was 63.6%, reflecting lower costs.
Cboe Global Markets, Inc. Price, Consensus and EPS Surprise
As of Jun 30, 2019, CBOE Global had cash and cash equivalents of $161.3 million, down 41.3% from the figure at 2018 end. Total assets were $5.2 billion in the second quarter, down 3% from the level at 2018 end.
At the end of the second quarter, long-term debt of the company stands at $916.6 million, up 0.1% year over year.
Total shareholders’ equity was $3.3 billion at the end of the reported quarter, up 2.7% from the value on Dec 31, 2018.
Share Repurchase and Dividend Update
The company paid out cash dividends worth $34.8 million or 31 cents per share in the second quarter.
As of Jun 30, 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 $405 and $413 million, down from the previous estimate of $415-$423 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 in the lower end of the 27-29% range.
Both Nasdaq (NDAQ - Free Report) and CME Group’s (CME - Free Report) earnings beat the Zacks Consensus Estimate while that of MarketAxess Holdings (MKTX - Free Report) missed expectations.
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Cboe Global's (CBOE) Q2 Earnings Beat Estimates, Rise Y/Y
Cboe Global Markets, Inc.’s (CBOE - Free Report) second-quarter 2019 adjusted earnings of $1.13 per share beat the Zacks Consensus Estimate by 5.6% on the back of its Options segment. Moreover, the bottom line increased 7.6% year over year.
Operational Details
Total revenues came in at $283.2 million, missing the Zacks Consensus Estimate by 0.3%. Moreover, the top line dipped nearly 0.1% due to lower trading volume across all business segments apart from the Options segment.
Average daily volume for Options inched up 2% year over year while the revenue per contract or RPC slipped 1% in the second quarter.
Total RPC for U.S. Futures was up 7% year over year.
Total operating expenses increased 2.3% year over year to $158 million.
Adjusted operating margin for the quarter under review was 63.6%, reflecting lower costs.
Cboe Global Markets, Inc. Price, Consensus and EPS Surprise
Cboe Global Markets, Inc. price-consensus-eps-surprise-chart | Cboe Global Markets, Inc. Quote
Financial Update
As of Jun 30, 2019, CBOE Global had cash and cash equivalents of $161.3 million, down 41.3% from the figure at 2018 end. Total assets were $5.2 billion in the second quarter, down 3% from the level at 2018 end.
At the end of the second quarter, long-term debt of the company stands at $916.6 million, up 0.1% year over year.
Total shareholders’ equity was $3.3 billion at the end of the reported quarter, up 2.7% from the value on Dec 31, 2018.
Share Repurchase and Dividend Update
The company paid out cash dividends worth $34.8 million or 31 cents per share in the second quarter.
As of Jun 30, 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 $405 and $413 million, down from the previous estimate of $415-$423 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 in the lower end of the 27-29% range.
Zacks Rank
Cboe Global has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Securities and Exchanges
Both Nasdaq (NDAQ - Free Report) and CME Group’s (CME - Free Report) earnings beat the Zacks Consensus Estimate while that of MarketAxess Holdings (MKTX - Free Report) missed expectations.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
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