Yahoo Finance Is a Beat in Store for Cboe Global (CBOE) in Q1 Earnings?
Cboe Global Markets, Inc. CBOE is slated to report first-quarter 2023 earnings on May 5, before the opening bell. CBOE beat earnings in three of the last four quarters and missed in one, the average surprise being 2.57%.
Factors to Consider
Higher volumes and increased demand for data and access solutions are likely to have aided the first-quarter performance of CBOE.
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 have favored Cboe Global’s top line in the first quarter. The Zacks Consensus Estimate for first-quarter revenues is pegged at $475.9 million, indicating an increase of 13.8% from the year-ago reported figure. Our estimate stands at $450.1 million.
Data and access revenues are likely to have benefited from increase in access and capacity fees in the Options and North American Equities segments
Access and capacity fees are likely to have been aided by higher logical port fees in the Options and North American Equities segments, higher physical port fees in the North American Equities and Options segments as well as proprietary market data attributable to Cboe Asia Pacific and NEO.
Market data revenues are likely to have been aided by an increase in financial risk analytics market data in the Options segment as well as proprietary market data.
A solid index business is likely to have favored Options performance in the reported quarter.
The Zacks Consensus Estimate for first-quarter market data fees and access and capacity fees is pegged at $85.6 million and $73.7 million, indicating growth of 9.9% and 4.2%, respectively, from the prior-year quarter reported figure. Our estimate for market data revenues is pegged at $72.7 million while the same for access and capacity fees is pegged at $87 million.
Cboe Global is likely to have benefited from strong proprietary products, VIX futures, VIX options and SPX options. Also, CBOE expects to witness solid growth in multi-listed options trading.
CBOE estimates interest expense to be in the range of $14.5 million to $15.5 million in the to-be-reported quarter.
Continuous buybacks are likely to have aided the bottom line.
The Zacks Consensus Estimate for first-quarter earnings per share is pegged at $1.82, indicating an increase of 5.2% from the prior-year quarter reported figure. We estimate the bottom line to be $1.71 per share.
What the Zacks Model Says
Our proven model predicts an earnings beat for Cboe Global this time around. This is because the stock has the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) that increases the odds of an earnings beat.
Earnings ESP: Cboe Global has an Earnings ESP of +2.07%. This is because the Most Accurate Estimate of $1.85 is pegged higher than the Zacks Consensus Estimate of $1.82. 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 Global carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Some other stocks from the finance sector with the perfect mix of elements to surpass estimates in their upcoming quarterly releases are as follows:
Agree Realty ADC has an Earnings ESP of +0.59% and a Zacks Rank of 3. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at 96 cents, indicating a decrease of 1.03% from the year-ago reported figure.
ADC’s earnings beat estimates in two of the last four reported quarters and met estimates in the other two.
American Equity Investment AEL has an Earnings ESP of +1.22% and a Zacks Rank #3. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at $1.09 per share, indicating an increase of 18.5% from the year-ago reported figure.
AEL’s earnings missed estimates in two of the last four reported quarters and missed in the other two.
AssetMark Financial AMK has an Earnings ESP of +1.87% and a Zacks Rank of 2. The Zacks Consensus Estimate for first-quarter 2023 earnings is pegged at 54 cents, indicating an increase of 38.5% from the year-ago reported figure.
AMK’s earnings beat estimates in the last four reported quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Cboe Global Markets, Inc. (CBOE) : Free Stock Analysis Report
American Equity Investment Life Holding Company (AEL) : Free Stock Analysis Report
Agree Realty Corporation (ADC) : Free Stock Analysis Report
AssetMark Financial Holdings, Inc. (AMK) : Free Stock Analysis Report
