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Cboe Global (CBOE) to Report Q3 Earnings: Is a Beat in Store?

Zacks Equity Research

Cboe Global Markets CBOE is slated to report third-quarter 2019 results on Nov 1, before market open. The company delivered positive earnings surprise in the last two reported quarters of 2019.

Let’s see how things have shaped up for this announcement.

Cboe Global’s third-quarter performance is likely to have benefited from strong market position and strength in its proprietary products, primarily SPX options, VIX options and VIX futures.

Acquisition of Bats Global is likely to have aided non-transactional revenue generating avenues.

Third-quarter revenues are expected to have benefited from proprietary market data and access and capacity fees. The Zacks Consensus Estimate for revenues is pegged at $284.2 million, indicating 5.1% increase from year-ago reported quarter figure.

CBOE Global estimates revenue per contract (RPC) for total options for the third quarter of 2019 to be 1% to 2% lower than 24.10 cents for the two months ended Aug 31, 2019. The RPC for futures is projected to be 0.5% to 1% higher than the two-month average of $1.783, indicating lower volume-related rebates in September.

Expenses are likely to have increased given several ongoing investments in systems hardware and software.

The Zacks Consensus Estimate for earnings is pegged at $1.15, indicating 5.2% increase from the year-ago period reported figure.

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

What Our Quantitative Model States

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 +0.72%. This is because the Most Accurate Estimate of $1.16 is pegged higher than the Zacks Consensus Estimate of $1.15. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Cboe Global carries a Zacks Rank #3.

Other Stocks to Consider

Here are some other stocks from the finance sector with the perfect combination of elements to surpass estimates in their upcoming releases.

Intercontinental Exchange ICE is set to report third-quarter earnings on Oct 31. The stock has an Earnings ESP of +0.07% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Brighthouse Financial BHF is set to report third-quarter earnings on Nov 4. The stock has an Earnings ESP of +0.56% and a Zacks Rank #3.

Ares Management L.P. ARES is set to report third-quarter earnings on Oct 31. The stock has an Earnings ESP of +3.36% and a Zacks Rank of 3.

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