What's in Store for Cboe Global (CBOE) This Earnings Season?
Cboe Global Markets, Inc. CBOE is slated to report fourth-quarter 2023 earnings on Feb 2, before the opening bell. CBOE beat earnings in each of the last four quarters, the average surprise being 4.07%.
Factors to Consider
Higher volumes and increased demand for data and access solutions are likely to have aided the fourth-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 fourth quarter. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $505 million, indicating an increase of 10.5% from the year-ago reported figure.
Data and access revenues are likely to have benefited from an increase in access and capacity fees and proprietary market data fees.
Market data revenues are likely to have been aided by increases in proprietary market data fees in the Options and Europe and Asia Pacific segments.
Access and capacity fees are likely to have been aided by a rise in physical port fees in the North American Equities, Options and Europe and Asia Pacific segments and increased logical port fees in the Europe and Asia Pacific and North American Equities segments, both driven by increases in subscribers and pricing.
The Zacks Consensus Estimate for fourth-quarter market data fees and access and capacity fees is pegged at $77 million and $90 million, indicating growth of 7% and 8.4%, respectively, from the prior-year quarter’s reported figure. Our estimate for market data revenues is pegged at $72.3 million, while the same for access and capacity fees is pegged at $89 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 $11-$12 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 fourth-quarter earnings per share is pegged at $2.02, indicating an increase of 12.2% from the prior-year quarter’s reported figure.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Cboe Global Markets 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. But that’s not the case here.
Earnings ESP: Cboe Global has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are both pegged at $2.02. 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 at present.
Stocks to Consider
Some stocks worth considering from the finance sector with the perfect combination of elements to surpass estimates this reporting cycle are as follows:
CME Group Inc. CME has an Earnings ESP of +0.01% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for CME’s fourth-quarter 2023 earnings is pegged at $2.27 per share, indicating an increase of 18.2% from the year-ago reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.
CME’s earnings beat estimates in each of the four trailing quarters.
Coinbase Global, Inc. COIN has an Earnings ESP of +166.67% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 loss per share is pegged at 6 cents per share, indicating an increase of 97.5% from the year-ago reported figure.
COIN’s earnings beat estimates in three of the last four quarters and missed in the one.
Arch Capital Group Ltd. ACGL has an Earnings ESP of +1.24% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $1.94 per share, indicating a decline of 9.3% from the year-ago reported figure.
ACGL’s earnings beat estimates in each of the four trailing quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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CME Group Inc. (CME) : Free Stock Analysis Report
Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report
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Coinbase Global, Inc. (COIN) : Free Stock Analysis Report
