Cboe Global Markets' (CBOE) strong market position, global reach, proprietary products' strength and solid capital position poise it well for long-term growth. The Zacks Consensus Estimate for 2024 and 2025 earnings has moved up 1% and 0.7%, respectively, in the past 30 days, reflecting analysts' optimism. This largest stock exchange operator by volume in the United States and a market leader globally for ETP trading has a solid history of delivering earnings surprises in the last seven reported quarters. I ...

Financial Data and Key Metrics Changes - The company reported a 7% year-over-year increase in net revenues, reaching a record $502 million, and a 13% increase in adjusted diluted earnings per share to $2.15 [45][70] - Adjusted EBITDA grew 9% year-over-year to $337 million, with adjusted EBITDA margins expanding by 1.4% year-over-year to 67.2% [71][72] - Adjusted operating expenses increased by 4% to $193 million, driven by higher compensation-related expenses and technology support services [71][113] Business Line Data and Key Metrics Changes - The Derivatives business saw an 8% year-over-year organic net revenue increase, with S&P 500 Index options volume up 17% year-over-year [46][70] - Data and Access Solutions net revenues also increased by 8% on an organic basis, with significant contributions from outside the Americas, particularly a 19% increase in Australia [64][112] - Cash and Spot Markets net revenues remained stable, reflecting muted volumes across global equity markets [55][70] Market Data and Key Metrics Changes - The company experienced a 41% increase in SPX global trading hours activity compared to Q1 2023, with a 73% increase in April [62] - In Europe, total index derivative volumes hit record levels in March, surpassing previous records by 26% [63] - Market share in Australia increased to 20.4%, while Japan's market share reached 5%, with volumes growing 72% year-over-year [86] Company Strategy and Development Direction - The company is refocusing its digital asset business to leverage core strengths in derivatives, technology, and product innovation due to regulatory uncertainties [47][56] - Plans include integrating digital asset derivatives into the global derivatives platform and winding down the Cboe Digital Spot Market by Q3 2024 [57][68] - The company aims to enhance its competitive position through technology improvements and a disciplined capital allocation strategy [121][79] Management's Comments on Operating Environment and Future Outlook - Management noted strong demand for options as investors utilize them for portfolio hedging amid low volatility [81] - The outlook for the remainder of the year includes potential drivers such as geopolitical tensions, inflation, and U.S. elections, which may increase the need for options [83][101] - Confidence in achieving the 7% to 10% revenue growth target for 2024 is supported by strong engagement and growth in all asset classes [112][115] Other Important Information - The company anticipates annualized savings of $11 million to $15 million from winding down the digital asset trading platform [75] - A one-time estimated pre-tax charge of $39 million to $82 million is expected due to the digital strategy realignment [114] - The company returned $58.5 million to shareholders in the form of dividends and repurchased $89 million in shares during Q1 [77] Q&A Session Summary Question: What gives confidence in the higher end of the revenue growth range? - Management expressed confidence due to strong net revenue results in Q1 and positive trends observed in April, despite facing tough comps for the rest of the year [100][101] Question: How does the company view the D&A growth outlook given tough comps? - Management remains confident in the 7% to 10% growth guidance, citing strong engagement and growth from new subscriptions, particularly from outside the Americas [102][105] Question: What are the expectations for index option volume growth? - Management indicated that various factors, including geopolitical tensions and inflation, could drive increased index option volume, contributing to overall growth [101][118]

The future expected repayments related to the Senior Notes as of March 31, 2024 are as follows (in millions): Interest expense recognized on the Term Loan Credit Agreement (the "Term Loan Agreement"), the Senior Notes, and the Revolving Credit Agreement is included in interest expense in the condensed consolidated statements of income. As of December 31, 2023 the Term Loan Agreement matured and was repaid in full and therefore the Company no longer | --- | --- | |--------------------------------|----------- ...

| --- | --- | --- | --- | --- | |------------------------------------------------------------------------------------|-----------|-------|-------|--------| | Table 2 \nTotal Revenues Less Cost of Revenues by Business Segment | | | | | | (in millions) | 1Q24 | | 1Q23 | Change | | Options | $ 307.4 | $ | 280.7 | 10 % | | North American Equities | 92.6 | | 93.1 | (1)% | | Europe and Asia Pacific | 54.1 | | 49.3 | 10 % | | Futures | 30.5 | | 31.1 | (2)% | | Global FX | 18.4 | | 18.5 | (1)% | | Digital | (0.9) | ...

The upcoming report from CBOE Global (CBOE) is expected to reveal quarterly earnings of $2.04 per share, indicating an increase of 7.4% compared to the year-ago period. Analysts forecast revenues of $507.41 million, representing an increase of 7.6% year over year.The consensus EPS estimate for the quarter has undergone an upward revision of 0.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this ti ...

The market expects CBOE Global (CBOE) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released ...

We are in a high-risk period. The ratio of lumber prices to gold prices has utterly collapsed as gold continues to hit record highs. Utility stocks are also showing strength relative to the S&P 500, something you typically see in advance of high-volatility junctures for equities. Treasurys are still quite volatile, but they are outperforming on specific days when stocks are down.In other words, the flight-to-safety trade looks like it’s trying to assert itself against inflationary headwinds. We are in a sto ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider CBOE Global (CBOE) . This company, which is in the Zacks Securities and Exchanges industry, shows potential for another earnings beat.This holding company for the Chicago Board Options Exchange has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an av ...

A compelling and diversified product portfolio helps drive revenues of Zacks Securities and Exchanges industry players. An increase in trading volumes, product expansion through prudent acquisitions and the increased adoption of a greater number of crypto assets are expected to benefit Intercontinental Exchange (ICE) , CME Group (CME) , Coinbase Global Inc. (COIN) , Nasdaq (NDAQ) , and Cboe Global Markets (CBOE) . Increased focus on accelerating their non-trading revenue base, which includes market technolo ...

I am not a doomer.I am not a perma-bear.However, I am a realist.I initially believed that the Federal Reserve overtightened interest rates, but the problem is that credit spreads disagree. Oddly enough, they are pretty much at cycle lows. Why does this matter?Because tight credit spreads mean the bond market isn’t worried about an economic slowdown that would impact highly levered issuers, putting them at risk of default. This in turn means that tight credit spreads are inflationary.Guess what? Today’s infl ...