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Will Cboe Global's (CBOE) Beat Streak Continue in Q2 Earnings?

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Cboe Global Markets, Inc. (CBOE - Free Report) is slated to report second-quarter 2024 earnings on Aug 2, before the opening bell. CBOE beat earnings in each of the last four quarters, the average surprise being 4.82%.

Factors to Consider

Higher volumes and increased demand for data and access solutions are likely to have aided the second-quarter performance of CBOE.

Improved transaction fees, driven by higher volumes traded, market data fees, access and capacity fees and regulatory fees, as well as the contribution from acquisitions are likely to have favored the company’s top line in the second quarter. A decrease in cash and spot markets and derivatives markets revenues is expected to have partially offset the upside. The Zacks Consensus Estimate for second-quarter revenues is pegged at $513.82 million, indicating an increase of 10% from the year-ago quarter’s reported figure. 

Data and access revenues are likely to have benefited from improved access and capacity fees and proprietary market data fees. 

Market data revenues are expected to have been aided by higher proprietary market data fees in the Options, Europe and Asia Pacific, and North American Equities segments.

Access and capacity fees are likely to have been aided by increased physical port fees in the North American Equities, Options, and Europe and Asia Pacific segments as well as increased logical port fees in the Options, Europe and Asia Pacific and Futures segments, both driven by increases in pricing and subscribers. 

Higher index options transaction fees and growth in recurring non-transaction revenues are likely to have favored Options’ performance in the to-be-reported quarter.

The Zacks Consensus Estimate for second-quarter market data fees and access and capacity fees is pegged at $75 million and $92 million, indicating growth of 2.5% and 5.8%, respectively, from the prior-year quarter’s reported figures. Our estimate for market data revenues is pegged at $73.9 million, while the same for access and capacity fees is pegged at $90.9 million.

Cboe Global is likely to have benefited from strong proprietary products, VIX futures, VIX and SPX options. Also, the company expects to witness solid growth in multi-listed options trading.

CBOE estimates net interest expense in the range of $9-$10 million in the quarter to be reported.

Continued share buybacks are expected to have aided the bottom line in the to-be-reported quarter.

The Zacks Consensus Estimate for second-quarter earnings per share is pegged at $2.09, indicating an increase of 17.4% from the prior-year quarter’s reported figure.

What the Zacks Model Says

Our proven model predicts 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 +0.44%. This is because the Most Accurate Estimate of $2.10 is pegged higher than the Zacks Consensus Estimate of $2.09. 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 carries a Zacks Rank of 3 at present.

Other Stocks to Consider

Here are some other finance stocks you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:

Fidelity National Financial, Inc. (FNF - Free Report) has an Earnings ESP of +1.61% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $1.27, indicating a year-over-year increase of 25.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

FNF’s earnings beat estimates in one of the last four reported quarters and missed in the other three.

Kemper Corporation (KMPR - Free Report) has an Earnings ESP of +14.77% and sports a Zacks Rank #1 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $1.27, indicating a year-over-year increase of 25.7%.

KMPR’s earnings beat estimates in two of the last four reported quarters, missed in one and matched once.

Brighthouse Financial, Inc. (BHF - Free Report) has an Earnings ESP of +1.15% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $4.36, indicating a year-over-year increase of 5.5%. 

BHF’s earnings beat estimates in three of the last four reported quarters and missed in one.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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