CBOE$CBOE

Cboe Global Markets Inc. · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Cboe's Q4 2019 financial results were released, revealing a decrease in revenue and EPS compared to the same period in 2018, primarily due to lower trading volumes across business segments. The company focused on expense management and returning capital to shareholders.

Cboe Global Markets reported a decrease in revenue and earnings per share for the fourth quarter of 2019 compared to the record fourth quarter of 2018. Net revenue was $280.3 million, a 16% decrease, and diluted EPS was $0.77, a 37% decrease. The company highlighted its expense management and commitment to returning capital to shareholders.

  • Diluted EPS for the quarter was $0.77, a 37% decrease year-over-year.
  • Adjusted diluted EPS for the quarter was $1.21, a 21% decrease year-over-year.
  • Net revenue for the quarter was $280.3 million, a 16% decrease year-over-year.
  • Adjusted operating expenses for the quarter decreased by 14% year-over-year.

Headline financials

Total Revenue

$280M

Previous: $334M-16.2%
EPS (adj)

$1.21

Previous: $1.54-21.4%
Options ADV

7.3M

Previous: 8.6M-15.2%
Multi-listed Options ADV

5.6M

Previous: 6.1M-8.5%
Index Options ADV

1.7M

Previous: 2.5M-31.4%
Multi-listed RPC

$0.06

Previous: $0.08-33.7%
Index Options RPC

$0.77

Previous: $0.75+2.1%
U.S. Equities Exchange ADV

6.8B

Previous: 17.8+38202247091.0%
U.S. Equities Exchange Net Capture

$0.02

No prior period
Futures ADV

228.0K

Previous: 338.0K-32.5%
Futures RPC

$1.79

Previous: $1.70+5.7%
European Equities ADNV

$6.5B

Previous: $22.70+28634361133.5%
European Equities Net Capture

$0.25

No prior period
Global FX ADNV

$30.1B

Previous: $15.30+196732026043.8%
Global FX Net Capture

$2.80

Previous: $2.63+6.5%
Capital Expenditures

$8.2M

Previous: $8.5M-3.5%
Free Cash Flow

$230M

Previous: $218M+5.2%
Net Income

$86.1M

Previous: $139M-38.0%
Operating Income

$119M

Previous: $177M-32.5%
Gross Profit

$280M

Previous: $334M-16.2%
Cash & Equivalents

$229M

Previous: $275M-16.6%
Total Assets

$5.11B

Previous: $5.32B-3.9%
Stock-Based Comp

$4.8M

Previous: $5.7M-15.8%

Revenue & EPS history

Cboe · Revenue · Quarterly

$280M

Q4 2019-16.2%vs Q4 2018
Beat estimate in 0 of 16 quarters(0%)
ActualEstimate

Revenue by segment

Cboe · $280M total across 5 segments · Q4 2019

  • Options
    $139M-20.1%
  • North American Equities
    $75.5M-7.4%
  • Futures
    $30.9M-23.5%
  • Europe and APAC
    $21.6M-11.1%
  • Global FX
    $12.9M-5.8%

Forward guidance

Cboe provided financial guidance for the 2020 fiscal year, which does not account for the planned acquisition of EuroCCP and investment in launching pan-European trading and clearing.

Tailwinds

  • Adjusted operating expenses are expected to be in the range of $435 to $443 million, reflecting the company’s recent acquisitions of Hanweck and FT Options.
  • Depreciation and amortization expense are expected to be in the range of $34 to $38 million, excluding the expected amortization of acquired intangible assets of $120 million.
  • 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.
  • 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.
  • Company plans to update its guidance for 2020 after the acquisition closes, which is expected in the first half of this year.

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 Q4 2019

Historical avgQ4 2019

+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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