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What's in the Cards for Cboe Global (CBOE) Q4 Earnings?

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Cboe Global Markets (CBOE - Free Report) is slated to report fourth-quarter 2019 results on Feb 7, before market open.

The company delivered a positive earnings surprise in all the last four quarters, the average being 10.8%.

Let’s see how things have shaped up for this announcement.

The company’s revenue base is expected to have been affected in the fourth quarter. The Zacks Consensus Estimate for the top line is pegged at $274 million, indicating an 18% decrease from the year-ago reported figure.

Revenues from U.S. equities might have persistently declined due to lower net capture.

Transaction fees of the market are also likely to have declined in the quarter due to lower trading volume. The consensus mark for the same suggests a plunge of 111% from the year-earlier reported number to $267 million.

Adverse forex fluctuations and lower market volumes might have weighed on Cboe Global's European equities as well.

However, the company is expected to have benefited partly from organic growth, a strong market position and strength in proprietary products, primarily SPX options, VIX options and VIX futures.

In the quarter under review, the company is likely to have continued incurring escalating expenses due to several growth-related investments in systems hardware and software. This, in turn, might have left the margins stressed.

The Zacks Consensus Estimate for earnings is pegged at $1.11, implying a 28% drop from the prior-year reported figure. This downside is anticipated to have been caused mainly by weak revenues.

What Our Quantitative Model States

Per our proven model, Cboe Global is not likely to beat on earnings for the quarter to be reported. This is because a stock needs the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), which is not the case here.

Earnings ESP: Cboe Global has an Earnings ESP of -0.13%. You can uncover the best stocks to buy or sell before they are 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 #4 (Sell).

Q3 Highlights

Cboe Global Markets’ third-quarter 2019 adjusted earnings of $1.29 per share beat the Zacks Consensus Estimate by 11.2%. Moreover, the bottom line improved 22% year over year on higher trading volumes.

Stocks to Consider

Some stocks worth considering from the finance sector with the perfect combination of elements to surpass estimates this reporting cycle are as follows:

CME Group Inc. CME is slated to announce fourth-quarter earnings on Feb 12. The stock has an Earnings ESP of +0.13% and is a #3 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.

American International Group, Inc. AIG is slated to report fourth-quarter earnings on Feb 13. It has a Zacks Rank of 3 and an Earnings ESP of +3.70%.

Assurant, Inc. AIZ is set to report fourth-quarter earnings on Feb 11. The company has a Zacks Rank #3 and an Earnings ESP of +0.62%.

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