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Cboe Global (CBOE) to Report Q1 Earnings: What's in Store?

Zacks Equity Research

Cboe Global Markets, Inc. CBOE is slated to report first-quarter 2020 results on May 1, before market open.

The company delivered a positive earnings surprise in all the last four quarters, the average being 9.49%.

Q1 Earnings & Revenue Expectations
   

The Zacks Consensus Estimate for earnings is pegged at $1.54, implying 38.7% increase from the prior-year reported figure. This upside is anticipated to have been driven by strong revenues.

The Zacks Consensus Estimate for the top line is pegged at $354.5 million, indicating 26.3% increase from the year-ago reported figure.

Let’s see how things have shaped up for this announcement.

The buyout of Bats Global is likely to have expanded the company’s product lines across asset classes, broadened its geographic reach and boosted non-transactional revenue generating avenues.

Revenues from U.S. equities might have persistently declined due to lower transaction fees and decline in net capture.

Transaction fees of the market are also likely to have declined in the quarter due to lower market volumes and market share across all segments and decline in market ADV within the U.S. Equities segment. The consensus mark of $316 million suggests a decline of 26.6% from the year-earlier reported number.

Adverse forex fluctuations and decline in market share might have weighed on Cboe Global's European equities as well.

However, the company is expected to have benefited partly from organic growth, a strong market position and strength in proprietary products, primarily SPX options and VIX futures.

In the quarter under review, the company is likely to have benefited from lower expenses due to lower compensation, benefits, depreciation and amortization expenses.

What Our Quantitative Model States

Our proven model does not conclusively predict an earnings beat for Cboe Global Markets this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Earnings ESP: Cboe Global has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate and the Zacks Consensus Estimate are both pegged at $1.54. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Cboe Global Markets, Inc. Price and EPS Surprise

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 #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Some stocks worth considering from the finance sector with the perfect combination of elements to surpass estimates this reporting cycle are as follows:

Assurant, Inc. AIZ has an Earnings ESP of +4.28% and a Zacks Rank of 3. It is slated to report first-quarter earnings on May 5.

Virtu Financial, Inc. VIRT has an Earnings ESP of +39.67% and a Zacks Rank #1. It is slated to report first-quarter earnings on May 7.

Green Dot Corp. GDOT has an Earnings ESP of +8.19% and is Zacks #3 Ranked. It is slated to report first-quarter earnings on May 13.

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