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Jun 30, 2020
Cboe Q2 2020 Earnings Report
Cboe's Q2 2020 performance was driven by record trading volumes in U.S. equities and multi-listed options, coupled with effective expense management and strategic acquisitions.
Key Takeaways
Cboe Global Markets reported a 5% increase in net revenue, driven by record trading volumes in U.S. equities and multi-listed options. The company's adjusted EPS increased by 16%, reflecting the benefits of its diversified business model and expense discipline. Strategic growth initiatives, including acquisitions and product expansions, contributed to the company's strong performance.
Record trading volumes in U.S. equities and multi-listed options.
Net transaction fees up 2% and non-transaction net revenue up 7%.
Adjusted operating expenses down 7% due to expense discipline.
Adjusted EBITDA margin of 71.1% demonstrates operating scale.
Revenue by Segment
Forward Guidance
Cboe provided full-year 2020 adjusted operating expenses guidance in the range of $436 million to $444 million. The effective tax rate on adjusted earnings is expected to be between 26.5% and 28.5%. Capital expenditures are projected to be $65 million to $70 million.
Positive Outlook
- Continued growth in core proprietary products.
- Disciplined expense management.
- Integration progress of information solutions acquisitions.
- Commenced integration of EuroCCP.
- Balance sheet flexibility.
Challenges Ahead
- COVID-19 impact on travel and promotional expenses.
- COVID-19 impact on professional fees.
- COVID-19 impact on pace of hiring.
- Uncertainty due to market volatility.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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