/Cboe%20Global%20Markets%20Inc_%20logoon%20phone-by%20Piotr%20Swat%20via%20Shutterstoc.jpg)
Cboe Global Markets, Inc. (CBOE), headquartered in Chicago, Illinois, offers a derivatives and securities exchange network that delivers cutting-edge trading, clearing, and investment solutions. Valued at $19.41 billion by market cap, the company provides trading solutions and products in multiple asset classes, including equities, derivatives, FX, and digital assets. The leading derivatives and exchange network is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Friday, Aug. 2.
Ahead of the event, analysts expect CBOE to report a profit of $2.08 per share on a diluted basis, up 16.9% from $1.78 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. During the previous quarter, robust derivative trends boosted revenue growth.
For fiscal 2024, analysts expect CBOE to report EPS of $8.52, up 9.2% from $7.80 in fiscal 2023.
CBOE stock has underperformed the S&P 500’s ($SPX) 15.4% gains on a YTD basis, with shares up 3.4% during this period. Similarly, it underperformed the S&P 500 Financials Sector SPDR’s (XLF) 14% gains over the same time frame.
On Apr. 9, CBOE shares closed down more than 1% after Morgan Stanley downgraded the stock to Equal Weight from Overweight.
CBOE’s overall performance can be attributed to its robust Q1 results and strong revenue growth guidance. During the first quarter, it added 106 new ETF securities across its global network of listings exchanges, helping the company surpass 1,000 ETFs listed across its global network of listings exchanges. On May 3, CBOE reported its Q1 results, with its adjusted EPS increasing 13% year over year to $2.15.
The company reported record net revenue of $502.10 million, up 7% year over year. CBOE anticipates ending 2024 at the higher end of the organic total net revenue growth range of 5% to 7% and reaffirmed data and access solutions organic net revenue growth target of 7% to 10%. Moreover, it decreased the 2024 adjusted operating expense guidance to between $795 million and $805 million, from $798 million to $808 million. CBOE shares closed up more than 3% on the day the results were released.
Analysts’ consensus opinion on CBOE stock is bullish, with a “Moderate Buy” rating overall. Out of 16 analysts covering the stock, five advise a “Strong Buy” rating, 10 recommend a “Hold” rating, and one gives a “Strong Sell.” The average analyst price target for CBOE is $188.28, indicating only a 2% potential upside from the current levels.
On the date of publication, Dipanjan Banchur 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.
