CBOE Q3 revenue up 14% on derivatives boost, says to sell Australia and Canada units

Reuters
Oct 31
CBOE Q3 revenue up 14% on derivatives boost, says to sell Australia and Canada units

Overview

  • Cboe Q3 net revenue rises 14% yr/yr, driven by growth in derivatives and cash markets

  • Record diluted EPS of $2.85, adjusted EPS up 20% yr/yr

  • Company to sell Cboe Australia and Canada, and discontinue U.S. and European corporate listings

Outlook

  • Cboe raises 2025 organic net revenue growth target to low double-digit to mid-teens

  • Company lowers 2025 adjusted operating expense guidance to $827-$842 mln

  • Data Vantage 2025 revenue growth target increased to high single-digit to low double-digit

Result Drivers

  • DERIVATIVES GROWTH - Derivatives net revenue increased 15% due to record volumes in the options business

  • DATA VANTAGE GROWTH - Data Vantage net revenue grew 12% yr/yr, contributing to overall revenue increase

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

$1.14 bln

Q3 Adjusted EPS

$2.67

Q3 EPS

$2.85

Q3 Net Income

$300.80 mln

Q3 Adjusted EBITDA

$409 mln

Q3 Adjusted EBITDA Margin

67.50%

Q3 Operating Income

$370.30 mln

Q3 Operating Margin

61.20%

Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 4 "strong buy" or "buy", 12 "hold" and 3 "sell" or "strong sell"

  • The average consensus recommendation for the financial & commodity market operators & service providers peer group is "buy."

  • Wall Street's median 12-month price target for CBOE Global Markets Inc is $255.00, about 7.1% above its October 30 closing price of $236.89

  • The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nCNWcZC5ka

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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