Is a Beat in Store for Cboe Global (CBOE) in Q2 Earnings?
Cboe Global Markets, Inc. CBOE is slated to report second-quarter 2023 earnings on Aug 4, before the opening bell. CBOE beat earnings in three of the last four quarters and missed in one, the average surprise being 2.35%.
Factors to Consider
Higher volumes and increased demand for data and access solutions are likely to have aided the second-quarter performance of Cboe Global.
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. The Zacks Consensus Estimate for second-quarter revenues is pegged at $467 million, indicating an increase of 10.1% from the year-ago reported figure.
Data and access revenues are likely to have benefited from an increase in access and capacity fees, proprietary market data fees and additional subscriptions.
Market data revenues are likely to have been aided by proprietary market data attributable to Cboe Canada, coupled with an increase in proprietary market data in the Options segment.
Access and capacity fees are likely to have been aided by increased logical and physical port fees in the Options and North American Equities segments, driven by a rise in subscribers.
The Zacks Consensus Estimate for second-quarter market data fees and access and capacity fees is pegged at $72 million and $88 million, indicating growth of 4.3% and 7.3%, respectively, from the prior-year quarter’s reported figure. Our estimate for market data revenues is pegged at $70.7 million, while the same for access and capacity fees is pegged at $89.4 million.
Cboe Global is likely to have benefited from strong proprietary products, VIX futures, VIX options and SPX options. Also, the company expects to witness solid growth in multi-listed options trading.
CBOE estimates interest expense in the range of $15-$16 million in the to-be-reported quarter.
Continued share buybacks are likely 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 $1.76, indicating an increase of 5.3% 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. This is because the stock has the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) that increases the odds of an earnings beat.
Earnings ESP: Cboe Global has an Earnings ESP of +0.13%. 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-eps-surprise | Cboe Global Markets, Inc. Quote
Zacks Rank: CBOE carries a Zacks Rank of 3.
Other Stocks to Consider
Some other stocks from the finance sector with the perfect mix of elements to surpass estimates in their upcoming quarterly releases are as follows:
American Equity Investment AEL has an Earnings ESP of +1.12% and a Zacks Rank of 2. The Zacks Consensus Estimate for AEL’s second-quarter 2023 earnings is pegged at $1.65 per share, indicating an increase of 68.3% from the year-ago reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
AEL’s earnings beat estimates in three of the last four quarters and missed in the one.
Brighthouse Financial, Inc. BHF has an Earnings ESP of +0.42% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2023 earnings is pegged at $3.55, indicating a year-over-year increase of 7.9%.
BHF’s earnings beat estimates in two of the last four quarters and missed in the other two.
BanColombia S.A. CIB has an Earnings ESP of +2.77% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for second-quarter 2023 earnings is pegged at $1.27, indicating a year-over-year increase of 28.6%.
CIB’s earnings beat estimates in three of the last four quarters and missed in the one.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report
American Equity Investment Life Holding Company (AEL) : Free Stock Analysis Report
BanColombia S.A. (CIB) : Free Stock Analysis Report
Brighthouse Financial, Inc. (BHF) : Free Stock Analysis Report
