What's in Store for Cboe Global (CBOE) This Earnings Season?
CBOE Global's (CBOE) third-quarter performance is likely to have benefited from increased volatility, which drove trading volume and continued growth in recurring non-transaction revenues as well as the contribution from...
Cboe Global Markets, Inc. CBOE is slated to report third-quarter 2021 results on Oct 29, before the opening bell. The company delivered an earnings surprise of 2.22% in the last reported quarter.
Factors to Consider
CBOE Global’s third-quarter performance is likely to have benefited from increased volatility, which drove trading volume and continued growth in recurring non-transaction revenues as well as the 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 third-quarter transaction fees is pegged at $430 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 third-quarter market data fees and access fees is pegged at $66 million and $69 million, indicating growth of 10% and 13.1%, respectively, from the prior-year quarter reported figure.
Expenses are likely to have increased given several ongoing investments in systems hardware and software.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $364.8 million, indicating an increase of 24.9% from the year-ago reported figure.
Cboe Global estimates quarterly interest expense between $11.5 million and $12 million,
The Zacks Consensus Estimate for third-quarter earnings per share is pegged at $1.43, indicating an increase of 28.8% 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 $1.43 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
Zacks Rank: CBOE Global carries a Zacks Rank of 2.
Stocks to Consider
Some stocks worth considering from the finance sector with a perfect mix of elements to surpass estimates in their upcoming quarterly releases are as follows:
Moody's Corporation MCO has an Earnings ESP of +0.94% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Equity Residential EQR has an Earnings ESP of +1.19% and a Zacks Rank of 3, at present.
Capital One Financial COF has an Earnings ESP of +4.66% and a Zacks Rank #2.
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