Is a Beat in the Cards for Cboe Global This Earnings Season?

Cboe Global Markets, Inc. CBOE is expected to register an improvement in its top and bottom lines when it reports first-quarter 2025 results on May 2, before the opening bell.

The Zacks Consensus Estimate for CBOE’s first-quarter revenues is pegged at $549.80 million, indicating 9.5% growth from the year-ago reported figure.

The consensus estimate for earnings is pegged at $2.34 per share. The Zacks Consensus Estimate for CBOE’s first-quarter earnings has moved up 7.8% in the past 30 days. The estimate suggests a year-over-year increase of 8.8%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

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 +0.80%. This is because the Most Accurate Estimate of $2.36 is pegged higher than the Zacks Consensus Estimate of $2.34. 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 #2 at present.

Factors Likely to Shape Q1 Results of CBOE

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

Solid volumes across Derivatives business, strong volumes across Cash and Spot Markets, growth of Data Vantage business and more disciplined expense management are expected to have favored the company’s top line in the first quarter. 

Cboe Data Vantage is likely to have benefited from increases in all three components of Data Vantage business, namely, real-time market data, analytics, and indices.

Healthy trading volumes and growth across all of the regional equities markets are expected to have favored Cash and Spot Markets. Growing customer base, demand for access to the U.S. market, and an increasing demand for options are likely to have benefited the Derivatives business.

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

The Zacks Consensus Estimate for first-quarter market data fees is pegged at $76 million, indicating growth of 5.5% from the prior-year quarter’s reported figures. The Zacks Consensus Estimate for access and capacity fees is pegged at $97 million, indicating growth of 7.8% from the prior-year quarter’s reported figures. Our estimate for market data revenues is pegged at $78.1 million, while the same for access and capacity fees is pegged at $97.5 million.

Higher multi-listed options transaction fees are 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:

Root, Inc. ROOT has an Earnings ESP of +25.84% and sports a Zacks Rank of 1 at present. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at 45 cents, indicating an increase of 207% from the year-ago reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.

ROOT’s earnings beat estimates in each of the last four quarters.

Assurant, Inc. AIZ has an Earnings ESP of +1.53% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at $3, indicating a decrease of 37.2% from the year-ago reported figure. 

AIZ’s earnings beat estimates in each of the last four quarters.

Lemonade, Inc. LMND has an Earnings ESP of +3.40% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for first-quarter 2025 loss per share is pegged at 94 cents, indicating a decline of 40.3% from the year-ago reported figure. 

LMND’s earnings beat estimates in each of the last four quarters.

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

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