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Cboe Global's (CBOE) Q2 Earnings Beat Estimates, Rise Y/Y

Zacks Equity Research

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.

Operational Details

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 and EPS Surprise

Cboe Global Markets, Inc. price-consensus-eps-surprise-chart | Cboe Global Markets, Inc. Quote

Financial Update

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.

Zacks Rank

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.

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