What's In The Cards For Cboe Global (CBOE) Q4 Earnings?
Zacks Investment Research | Feb 04, 2020 10:21PM ET
Cboe Global Markets (NYSE:CBOE) is slated to report fourth-quarter 2019 results on Feb 7, before market open.
The company delivered a positive earnings surprise in all the last four quarters, the average being 10.8%.
Let’s see how things have shaped up for this announcement.
The company’s revenue base is expected to have been affected in the fourth quarter. The Zacks Consensus Estimate for the top line is pegged at $274 million, indicating an 18% decrease from the year-ago reported figure.
Revenues from U.S. equities might have persistently declined due to lower net capture.
Transaction fees of the market are also likely to have declined in the quarter due to lower trading volume. The consensus mark for the same suggests a plunge of 111% from the year-earlier reported number to $267 million.
Adverse forex fluctuations and lower market volumes 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, VIX options and VIX futures.
In the quarter under review, the company is likely to have continued incurring escalating expenses due to several growth-related investments in systems hardware and software. This, in turn, might have left the margins stressed.
The Zacks Consensus Estimate for earnings is pegged at $1.11, implying a 28% drop from the prior-year reported figure. This downside is anticipated to have been caused mainly by weak revenues.
What Our Quantitative Model States
Per our proven model, Cboe Global is not likely to beat on earnings for the quarter to be reported. This is because a stock needs the right combination of a positive Original post
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