Cboe Global Markets, Inc.’s CBOE second-quarter 2019 adjusted earnings of $1.13 per share beat the Zacks Consensus Estimate by 5.6% on the back of its Options segment. Moreover, the bottom line increased 7.6% year over year.
Total revenues came in at $283.2 million, missing the Zacks Consensus Estimate by 0.3%. Moreover, the top line dipped nearly 0.1% due to lower trading volume across all business segments apart from the Options segment.
Average daily volume for Options inched up 2% year over year while the revenue per contract or RPC slipped 1% in the second quarter.
Total RPC for U.S. Futures was up 7% year over year.
Total operating expenses increased 2.3% year over year to $158 million.
Adjusted operating margin for the quarter under review was 63.6%, reflecting lower costs.
Cboe Global Markets, Inc. Price, Consensus and EPS Surprise
Cboe Global Markets, Inc. price-consensus-eps-surprise-chart | Cboe Global Markets, Inc. Quote
As of Jun 30, 2019, CBOE Global had cash and cash equivalents of $161.3 million, down 41.3% from the figure at 2018 end. Total assets were $5.2 billion in the second quarter, down 3% from the level at 2018 end.
At the end of the second quarter, long-term debt of the company stands at $916.6 million, up 0.1% year over year.
Total shareholders’ equity was $3.3 billion at the end of the reported quarter, up 2.7% from the value on Dec 31, 2018.
Share Repurchase and Dividend Update
The company paid out cash dividends worth $34.8 million or 31 cents per share in the second quarter.
As of Jun 30, 2019, the company has around $171.1 million left under its current share repurchase authorization.
Fiscal 2019 Outlook
Adjusted operating expenses are now expected between $405 and $413 million, down from the previous estimate of $415-$423 million.
Capital expenditures are now projected in the $50-$55 million band.
The effective tax rate on adjusted earnings for 2019 is likely to be in the lower end of the 27-29% range.
Cboe Global has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Securities and Exchanges
Both Nasdaq NDAQ and CME Group’s CME earnings beat the Zacks Consensus Estimate while that of MarketAxess Holdings MKTX missed expectations.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Nasdaq, Inc. (NDAQ) : Free Stock Analysis Report
CME Group Inc. (CME) : Free Stock Analysis Report
MarketAxess Holdings Inc. (MKTX) : Free Stock Analysis Report
Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report
To read this article on Zacks.com click here.