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Sep 30, 2020
Cboe Q3 2020 Earnings Report
Cboe's Q3 2020 results reflected robust retail customer engagement offset by decreased institutional investor trading due to global macro-environment uncertainty. Key growth initiatives, including acquisitions and market data expansion, were advanced.
Key Takeaways
Cboe Global Markets reported diluted EPS of $1.01, up 7 percent, and adjusted diluted EPS of $1.11, down 14 percent. Net revenue for the quarter was $292.0 million, a decrease of 1 percent. The company returned $88 million to shareholders through share repurchases and dividends.
Diluted EPS for the Quarter of $1.01, Up 7 Percent
Adjusted Diluted EPS for the Quarter of $1.11, Down 14 Percent
Net Revenue for the Quarter of $292.0 Million, Down 1 Percent
Returned $88 Million to Shareholders Through Share Repurchases and Dividends
Revenue by Segment
Forward Guidance
The company updated its guidance for the 2020 fiscal year, taking into account acquisitions completed through September 30, 2020, and investment in launching pan-European derivatives trading and clearing.
Positive Outlook
- Adjusted operating expenses are now expected to be in the range of $415 to $420 million, down from the previous guidance of $436 to $444 million, primarily reflecting lower compensation costs, including incentive-based compensation, professional fees and travel and marketing expenses.
- The guidance excludes the amortization of acquired intangible assets, which is now expected to be $124 million versus prior guidance of $120 million. The company plans to include this amount in its non-GAAP reconciliation.
- Depreciation and amortization expense, which is included in adjusted operating expenses above, is now expected to be in the range of $32 to $36 million, down from previous guidance of $34 to $38 million, excluding the expected amortization of acquired intangible assets of $124 million.
- The decrease reflects a lower level of capital spending.
- Capital expenditures are now expected to be in the range of $45 to $50 million, down compared to prior guidance of $65 to $70 million, reflecting a shift in the timing of certain expenditures, as well as lower spending for certain projects.
Challenges Ahead
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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