CBOE$CBOE

Cboe Global Markets Inc. · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Cboe's first quarter was defined by market uncertainty due to COVID-19, leading to record net revenues and earnings.

Cboe Global Markets reported record results for the first quarter of 2020, driven by increased trading activity across asset classes and expense discipline. Net revenue reached a record $358.3 million, up 28 percent, and adjusted diluted EPS was $1.65, up 48 percent. The company returned $160 million to shareholders through share repurchases and dividends.

  • Diluted EPS for the quarter was $1.42, up 67 percent.
  • Record adjusted diluted EPS for the quarter was $1.65, up 48 percent.
  • Record net revenue for the quarter was $358.3 million, up 28 percent.
  • Set new quarterly highs for total options and FX volume.

Headline financials

Total Revenue

$358M

Previous: $281M+27.7%
EPS (adj)

$1.65

Previous: $1.11+48.6%
Options ADV

38.3

Previous: 36.8+4.1%
Multi-listed Options ADV

8.1M

Previous: 5.2M+54.7%
Index Options ADV

2.7M

Previous: 1.8M+44.1%
Multi-listed RPC

$0.05

Previous: $0.07-20.9%
Index Options RPC

$0.78

Previous: $0.73+7.0%
U.S. Equities Exchange ADV

16.7

Previous: 16+4.4%
U.S. Equities Exchange Net Capture

$0.03

Previous: $0.03-10.3%
Futures ADV

331.0K

Previous: 231.0K+43.3%
Futures RPC

$1.75

Previous: $1.74+0.6%
European Equities ADNV

$17.70

Previous: $22.10-19.9%
European Equities Net Capture

$0.00

Previous: $0.00+16.2%
Global FX ADNV

$15.70

Previous: $15.80-0.6%
Global FX Net Capture

$2.69

Previous: $2.61+3.1%
Capital Expenditures

$10.6M

Previous: $5.8M+82.8%
Free Cash Flow

$153M

Previous: $112M+36.1%
Net Income

$157M

Previous: $95.4M+65.0%
Operating Income

$226M

Previous: $145M+55.7%
Gross Profit

$358M

Previous: $279M+28.2%
Cash & Equivalents

$165M

Previous: $346M-52.3%
Total Assets

$5.24B

Previous: $5.33B-1.7%
Stock-Based Comp

$8.3M

Previous: $5.4M+53.7%

Revenue & EPS history

Cboe · Revenue · Quarterly

$358M

Q1 2020+27.7%vs Q1 2019
Beat estimate in 0 of 16 quarters(0%)
ActualEstimate

Revenue by segment

Cboe · $358M total across 5 segments · Q1 2020

  • Options
    $189M+36.1%
  • North American Equities
    $86.6M+14.2%
  • Futures
    $40.1M+35.9%
  • Europe and APAC
    $26.2M+14.9%
  • Global FX
    $16.9M+21.6%

Forward guidance

Cboe updated or reaffirmed its guidance for the 2020 fiscal year. This guidance does not take into account the company’s planned acquisition of EuroCCP, which is subject to satisfaction or waiver of conditions precedent, and its investment in launching pan-European derivatives trading and clearing, which is subject to regulatory approval. The company plans to update its guidance for 2020 after the acquisition closes, which is currently expected in the second quarter of this year.

Tailwinds

  • Adjusted operating expenses are now expected to be in the range of $419 to $427 million, down $16 million from the previous guidance of $435 to $443 million, primarily reflecting near-term cost reductions due to the COVID-19 pandemic.
  • The guidance excludes the expected amortization of acquired intangible assets of $120 million, which the company plans to include in its non-GAAP reconciliation.
  • Reaffirmed that depreciation and amortization expense, which is included in adjusted operating expenses above, is expected to be in the range of $34 to $38 million, excluding the expected amortization of acquired intangible assets of $120 million.
  • Reaffirmed that the effective tax rate on adjusted earnings for the full year is expected to be in the range of 26.5 to 28.5 percent.
  • Reaffirmed that capital expenditures are expected to be in the range of $65 to $70 million, which includes expenditures associated with the company’s Chicago headquarters relocation occurring later this year and its trading floor relocation planned for 2021.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.5%

Avg return

Earnings day

+1.7%

Avg return

5 days after

+4.0%

Avg return

30 days after

55%

35 / 64 earnings

Positive

+9.0%

Q1 2026

Best reaction

-7.3%

Q2 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+9.0%+15.3%+10.5%
Q3 2025+3.7%+6.2%+9.0%
Q2 2025+2.8%+2.9%-2.1%
Q1 2025+2.4%+5.9%+3.6%
Q4 2025+1.3%+2.4%+2.9%
Q3 2024-1.9%-5.7%+1.1%
Q4 2024+1.3%-5.7%+1.1%
Q2 2024+5.7%+8.9%+10.6%
Q4 2023-1.6%-0.1%+1.2%
Q3 2023+6.9%+6.9%+10.7%
Q2 2023+4.5%+4.4%+7.4%
Q1 2023-0.4%+1.0%-1.4%
Q4 2022+4.5%+5.0%+4.6%
Q3 2022+1.9%-1.3%+2.7%
Q2 2022-7.3%-6.2%-4.2%
Q1 2022-2.9%-0.5%-3.0%
Q4 2021+2.8%+4.0%+3.3%
Q3 2021+1.9%+2.7%-1.7%
Q2 2021+4.1%+6.4%+8.2%
Q1 2021+3.3%+6.1%+7.7%
Q4 2020-3.3%-5.1%+10.0%
Q3 2020+5.2%+9.8%+15.8%
Q2 2020-0.6%-0.3%+5.6%
Q1 2020-5.0%-1.9%+7.1%
Q4 2019-3.3%-3.4%-8.7%
Q3 2019-1.4%-0.6%+3.3%
Q2 2019-0.3%+2.6%+3.6%
Q1 2019+3.2%+2.7%+8.6%
Q4 2018-0.9%+0.0%-2.8%
Q3 2018+1.5%+0.7%-2.6%
Q2 2018-3.0%-3.2%+5.2%
Q1 2018-2.2%-1.5%-6.7%
Q4 2017-0.4%+3.5%+12.0%
Q3 2017-0.9%+0.0%+8.5%
Q2 2017-0.4%+1.9%+6.3%
Q1 2017+3.1%+2.2%+8.2%
Q4 2016+1.3%-0.6%+0.3%
Q3 2016+1.7%+1.2%+10.1%
Q2 2016+0.1%+0.7%+0.8%
Q1 2016-1.5%
Q4 2015-6.1%
Q3 2015-1.2%
Q2 2015+1.1%
Q1 2015-1.3%
Q4 2014-5.8%
Q3 2014+3.6%
Q2 2014+1.5%
Q1 2014-4.2%
Q4 2013+5.2%
Q3 2013+2.6%
Q2 2013-4.1%
Q1 2013+3.8%
Q4 2012+1.4%
Q3 2012+2.5%
Q2 2012-0.7%
Q1 2011+0.3%
Q1 2012+2.3%
Q4 2011-0.8%
Q4 2009-0.8%
Q3 2011-4.3%
Q3 2010-4.3%
Q2 2010+2.8%
Q2 2011+2.8%
Q4 2010+2.8%

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