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Valued at a market cap of $20.2 billion, Chicago, Illinois-based Cboe Global Markets, Inc. (CBOE) stands as a major U.S. stock exchange operator by trading volume and a global leader in ETP trading. The company's operations span diverse segments, including Options, North American Equities, Europe and Asia Pacific, Futures, Global FX, and Digital. CBOE is scheduled to announce its Q4 earnings before the market opens on Friday, February 7.
Ahead of the event, analysts expect CBOE to report a profit of $2.15 per share, up 4.4% from $2.06 per share reported in the year-ago quarter. The company has surpassed Wall Street’s adjusted EPS projections in the past four quarters. Its adjusted EPS for the last reported quarter surpassed the consensus estimates by 1.4%.
For fiscal 2024, analysts expect CBOE to report an adjusted EPS of $8.65, up 10.9% from $7.80 in fiscal 2023.
CBOE has climbed 6.5% over the past year, lagging behind the S&P 500 Index’s ($SPX) 24.4% gains and the Financial Select Sector SPDR Fund’s (XLF) 31.6% returns during the same time frame.
On Jan. 7, shares of Cboe Global Markets dropped nearly 1% following a downgrade by JPMorgan Chase & Co. (JPM) to “Underweight” from “Neutral,” with a price target of $174.
Moreover, shares of Cboe fell 1.7% on Nov. 1 following the release of its Q3 earnings results due to weaker-than-expected results in the U.S. equities segment, including a drop in market share and reduced off-exchange market participation.
On the brighter side, the company raised its 2024 organic total net revenue growth target to 7%-9%, up from the prior 6%-8% range, while maintaining the lower end of its Data and Access Solutions organic net revenue growth target at 7%-10%.
The consensus opinion on CBOE stock is cautious, with an overall “Moderate Buy” rating. This is a step down from “Moderate Buy” a month ago. Among the 18 analysts covering the stock, four recommend a “Strong Buy,” 12 suggest a “Hold,” and two “Strong Sell.”
The mean price target of $209.50 represents a potential upside of 8.9% from the prevailing price levels.
