Cboe Global (CBOE) to Post Q3 Earnings: What to Expect?
Cboe Global Markets, Inc. CBOE is slated to report third-quarter 2023 earnings on Nov 3 before the opening bell. CBOE beat earnings in each of the last four quarters, the average surprise being 3.07%.
Factors to Consider
Higher volumes and increased demand for data and access solutions are likely to have aided the third-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 third quarter. The Zacks Consensus Estimate for third-quarter revenues is pegged at $478 million, indicating an increase of 8.2% from the year-ago reported figure.
Data and access revenues are likely to have benefited from an increase in proprietary market data fees and access and capacity fees.
Market data revenues are likely to have been aided by proprietary market data in the Options and Europe and Asia Pacific segments, coupled with an increase in proprietary market data fees attributable to Cboe Canada.
Access and capacity fees are likely to have been aided by increased logical port fees in the North American Equities and Europe and Asia Pacific segments, driven by a rise in subscribers and improved physical port fees in the Options and Europe and Asia Pacific segments.
The Zacks Consensus Estimate for third-quarter market data fees and access and capacity fees is pegged at $76 million and $89 million, indicating growth of 7% and 8.5%, respectively, from the prior-year quarter’s reported figure. Our estimate for market data revenues is pegged at $72 million, while the same for access and capacity fees is pegged at $90.2 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 interest expense in the range of $12-$13 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 third-quarter earnings per share is pegged at $1.84, indicating an increase of 5.7% 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 +0.71%. This is because the Most Accurate Estimate of $1.85 is pegged higher than the Zacks Consensus Estimate of $1.84. 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 2.
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:
Hamilton Lane Inc. HLNE has an Earnings ESP of +1.58% and a Zacks Rank of 3. The Zacks Consensus Estimate for HLNE’s third-quarter 2023 earnings is pegged at 95 cents per share, indicating a decline of 6.8% from the year-ago reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
HLNE’s earnings beat estimates in three of the last four quarters and missed in the one.
American Equity Investment Life Holding Company AEL currently has an Earnings ESP of +1.44% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2023 earnings is pegged at $1.67, indicating an increase of 68.6% from the year-ago reported figure.
AEL’s earnings beat estimates in the two four reported quarters and missed in the other two.
Brighthouse Financial, Inc. BHF currently has an Earnings ESP of +0.10% and a Zacks Rank of 3. The Zacks Consensus Estimate for third-quarter 2023 earnings is pegged at $4.03, indicating an increase of 10,175% from the year-ago reported figure.
BHF’s earnings beat estimates in the two four reported quarters and missed in the other two.
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
Hamilton Lane Inc. (HLNE) : Free Stock Analysis Report
Brighthouse Financial, Inc. (BHF) : Free Stock Analysis Report
