Will Cboe Global Pull Off a Surprise This Earnings Season?

Cboe Global Markets, Inc. CBOE is expected to register an improvement in its top and bottom lines when it reports second-quarter 2025 results on Aug. 1, before the opening bell.

The Zacks Consensus Estimate for CBOE’s second-quarter revenues is pegged at $572.24 million, indicating 11.3% growth from the year-ago reported figure.

The consensus estimate for earnings is pegged at $2.42 per share. The Zacks Consensus Estimate for CBOE’s second-quarter earnings has moved up 0.8% in the past 30 days. The estimate suggests a year-over-year increase of 12.5%.

What the Zacks Model Unveils for CBOE

Our proven model predicts an earnings beat for Cboe Global this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) that increases the chances of an earnings beat.

Earnings ESP: Cboe Global has an Earnings ESP of +0.66%. This is because the Most Accurate Estimate of $2.44 is pegged higher than the Zacks Consensus Estimate of $2.42. 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 carries a Zacks Rank #3 at present.

Factors Likely to Shape Q2 Results of CBOE

Solid index options growth, higher transaction and clearing fees, access and capacity fees, market data fees and regulatory fees are likely to have aided the second-quarter performance of CBOE. 

Higher cash and spot markets and derivatives markets revenues, driven by an increase in transaction and clearing fees, as a result of increased volumes traded on the Cboe options, Cboe U.S. equities, and Cboe European equities exchanges, are expected to have favored the company’s top line in the second quarter. 

Cboe Data Vantage is likely to have benefited from increases in access and capacity fees and proprietary market data fees.
Higher regulatory fees and transaction and clearing fees are expected to have favored Cash and Spot Markets. Increases in transaction and clearing fees and regulatory fees are likely to have benefited the Derivatives business.

Access and capacity fees are likely to have been aided by increased logical port fees in the North American Equities, Options, and Europe and Asia Pacific segments, driven by increased customer demand.

Proprietary market data fees are expected to have been aided by increases in proprietary market data fees in the Options, North American Equities, and Europe and Asia Pacific segments. 

Our estimate for market data revenues is pegged at $81.1 million, while the same for access and capacity fees is pegged at $96.6 million.
An increase in net transaction and clearing fees driven by a rise in index options ADV and multi-listed options ADV is likely to have favored Options’ performance in the to-be-reported quarter.

Cboe Global is likely to have benefited from strong proprietary products, VIX futures, VIX and SPX options. Also, the company expects to witness solid growth in multi-listed options trading.

Continued share buybacks are expected to have aided the bottom line in the to-be-reported quarter.

Other Stocks to Consider

Here are some other finance stocks you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:

American International Group, Inc. AIG has an Earnings ESP of +0.18% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $1.58 per share, indicating a year-over-year increase of 36.2%. AIG’s earnings beat estimates in three of the last four quarters while missing in one.

Assurant, Inc. AIZ has an Earnings ESP of +1.99% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is pegged at $4.43 per share, implying an increase of 8.5% from the year-ago reported figure.
AIZ’s earnings beat estimates in each of the last four quarters.

Palomar Holdings, Inc. PLMR has an Earnings ESP of +0.25% and a Zacks Rank #2 at present. The Zacks Consensus Estimate for second-quarter 2025 earnings is $1.68, representing a 34.4% year-over-year increase. 

PLMR’s beat estimates in each of the last four reported quarters.

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This article originally published on Zacks Investment Research (zacks.com).

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