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What Awaits Cboe Global Markets (CBOE) This Earnings Season?

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Cboe Global Markets, Inc. (CBOE - Free Report) is slated to report second-quarter 2021 results on Jul 30, before the opening bell. The company delivered an 10.07% earnings surprise in the last reported quarter.

Factors to Consider

CBOE Global’s second-quarter performance is likely to have benefited from multi-listed options and continued growth in recurring non-transaction revenues, as well as 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 second-quarter transaction fees is pegged at $434 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 second-quarter market data fees and access fees is pegged at $62 million and $65 million, indicating growth of 5.1% and 16.1%, respectively, from the prior-year quarter reported figure.

CBOE Global’s reported mixed average daily volume (ADV) for the second quarter and June 2021. ADV of 12.1 million contracts per day was up 14.5% year over year in the second quarter due to solid performance in Options, partly offset by lower Futures volume. U.S. Equities Global Forex, and European Equities declined.  

Total contracts for the second quarter were 1.5 billion, up 13.6% year over year. Of this, Options improved 14% to 1.5 billion while Futures decreased 1.5% to 29.1 million. While Options ADV was 11.8 million, Futures ADV was 0.2 million.

Total volumes of U.S. Equities were 229.2 billion shares, down 4% year over year. European Equities reflected a decline of 4.8% year over year to €933 billion. Meanwhile, Global FX decreased 8.1% to $4.4 trillion. Total volumes of Canadian Equities traded were 7.4 billion in the second quarter while U.S. Equities – Off-Exchange Matched volumes were 10.8 billion shares.

Estimate Picture

The Zacks Consensus Estimate for second-quarter revenues is pegged at $344.9 million, indicating an increase of 16.6% 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 $12.5 million,

The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $1.35, indicating an increase of 3.1% 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 $1.35 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:

Coinbase Global (COIN - Free Report) has an Earnings ESP of +6.64% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Aflac Incorporated (AFL - Free Report) has an Earnings ESP of +2.20% and a Zacks Rank of 3, at present.

American Tower Corporation (AMT - Free Report) has an Earnings ESP of +1.67% and a Zacks Rank #3.


 


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