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Dec 31, 2019
Cboe Q4 2019 Earnings Report
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.
Key Takeaways
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.
Revenue by Segment
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.
Positive Outlook
- 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.
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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