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

Cboe Global Markets, Inc.’s (NYSE: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.

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 (NASDAQ:NDAQ) and CME Group’s (NASDAQ:CME) earnings beat the Zacks Consensus Estimate while that of MarketAxess Holdings (NASDAQ:MKTX) missed expectations.

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