CBOE$CBOE

Cboe Global Markets Inc. · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Cboe's Q4 2020 financial results were reported, showing revenue growth and EPS that met expectations.

Cboe Global Markets reported solid fourth quarter and strong full year 2020 results. Net revenue for the quarter was $307.1 million, a 10% increase compared to the prior-year period. Diluted EPS increased 5% to $0.81, while adjusted diluted EPS was flat at $1.21.

  • Diluted EPS of $0.81 for the quarter, up 5% year-over-year.
  • Adjusted diluted EPS of $1.21 for the quarter, flat compared to the previous year.
  • Net revenue of $307 million for the quarter, up 10% year-over-year.
  • Board of Directors authorizes up to an additional $200 million for share repurchase program

Headline financials

Total Revenue

$307M

Previous: $280M+9.6%
EPS (adj)

$1.21

Previous: $1.21+0.0%
Options ADV

10.3K

Previous: 7.3M-99.9%
Multi-listed Options ADV

8.7K

Previous: 5.6M-99.8%
Index Options ADV

1.6K

Previous: 1.7M-99.9%
Multi-listed RPC

$0.07

Previous: $0.06+23.6%
Index Options RPC

$0.81

Previous: $0.77+5.6%
U.S. Equities Exchange ADV

15.1

Previous: 6.8B-100.0%
U.S. Equities Exchange Net Capture

$0.01

Previous: $0.02-34.8%
Futures ADV

159

Previous: 228.0K-99.9%
Futures RPC

$1.57

Previous: $1.79-12.2%
European Equities ADNV

$17.50

Previous: $6.5B-100.0%
European Equities Net Capture

$0.26

Previous: $0.25+4.4%
Global FX ADNV

$16.70

Previous: $30.1B-100.0%
Global FX Net Capture

$2.64

Previous: $2.80-5.7%
Capital Expenditures

$10.2M

Previous: $8.2M+24.4%
Free Cash Flow

$259M

Previous: $230M+12.9%
Net Income

$87.1M

Previous: $86.1M+1.2%
Operating Income

$135M

Previous: $119M+13.1%
Gross Profit

$307M

Previous: $280M+9.6%
Cash & Equivalents

$245M

Previous: $229M+7.0%
Total Assets

$6.52B

Previous: $5.11B+27.4%
Stock-Based Comp

$4.4M

Previous: $4.8M-8.3%

Revenue & EPS history

Cboe · Revenue · Quarterly

$307M

Q4 2020+9.6%vs Q4 2019
Beat estimate in 3 of 16 quarters(19%)
ActualEstimate

Revenue by segment

Cboe · $272M total across 4 segments · Q4 2020

  • Options
    $163M+16.6%
  • North American Equities
    $73.6M-2.5%
  • Futures
    $21.5M-30.4%
  • Global FX
    $14M+8.5%

Forward guidance

Cboe provided guidance for the 2021 fiscal year. Adjusted operating expenses are expected to be in the range of $531 to $539 million. The effective tax rate on adjusted earnings for the full year is expected to be in the range of 27.5 to 29.5 percent.

Tailwinds

  • The company expects recently closed acquisitions to contribute net revenue growth in a range of 4 to 6 percentage points.
  • Recurring non-transactional revenue, defined as access and capacity fees plus proprietary market data, is targeted to increase by 7 percent to 8 percent, from a base of $342 million in 2020, with organic growth targeted in a range of 6 to 7 percent.
  • Adjusted operating expenses are expected to be in the range of $531 to $539 million.
  • Depreciation and amortization expense, which is included in adjusted operating expenses above, is expected to be in the range of $38 to $42 million, excluding the expected amortization of acquired intangible assets of $116 million.
  • Capital expenditures are expected to be in the range of $60 to $65 million, reflecting expenditures associated with the company’s planned trading floor relocation in 2021 and ongoing capacity and technology-related investments.

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 2020

Historical avgQ4 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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro