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Chicago, Illinois-based Cboe Global Markets, Inc. (CBOE) operates as one of the largest stock exchange operators by volume in the U.S. and a leading market globally for ETP trading. With a market cap of $22.2 billion, it operates through Options, North American Equities, Europe and Asia Pacific, Futures, Global FX, and Digital segments. The company is expected to release its Q3 earnings before the market opens on Friday, Nov. 1.
Ahead of the event, analysts expect CBOE to report a profit of $2.18 per share, up 5.8% 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 grew 20.8% year-over-year to $2.15, exceeding the consensus estimates by 1.9%.
For fiscal 2024, analysts expect CBOE to report an adjusted EPS of $8.68, up 11.3% from $7.80 in fiscal 2023.
CBOE has gained nearly 18% on a YTD basis, lagging behind the S&P 500 Index’s ($SPX) 22.8% gains and the Financial Select Sector SPDR Fund’s (XLF) 26.7% returns during the same time frame.
Shares of Cboe Global Markets surged 4.3% after the release of its Q2 earnings on Aug. 2. The company’s net revenues grew by a robust 10% year-over-year to $513.8 million, driven by increases in cash and spot markets, derivatives markets, and data and access solutions net revenue. Although the company saw a 36.6% increase in operating expenses, it included a $81 million impairment cost recognized in the Digital reporting unit, leading to a decline in net income. However, excluding the non-recurring expenses, Cboe’s net income to common stockholders grew by 20%, reaching $226.2 million compared to the year-ago quarter.
The consensus opinion on CBOE stock is moderately bullish, with an overall “Moderate Buy” rating. Of the 17 analysts covering the stock, four recommend a “Strong Buy” and 13 suggest a “Hold” rating. As of writing, CBOE is trading below its mean price target of $211.06.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
