CBOE Global Markets Reports Increased Earnings

CBOE Global Markets, a leading exchange operator, experienced a rise in earnings for the fourth quarter. Despite a slight decrease in revenue, lower operating expenses and higher trading volumes contributed to the company's success.

Earnings Highlights

• Fourth-quarter earnings amounted to $210.8 million, or $1.98 a share, up from $159 million, or $1.49 a share, in the previous year.
• Adjusted earnings per share stood at $2.06, surpassing the average analyst target of $2.04 a share.
• Revenue experienced a slight decline of 3.6%, reaching $968.7 million.

Strong Trading Performance

During the fourth quarter, CBOE Global reported a 2.1% increase in the average daily volume of options contracts traded on its platforms, reaching 14.9 million. This positive trading performance helped offset the decrease in revenue.

Future Growth Outlook

CBOE Global aims to achieve organic revenue growth between 5% and 7% for the year 2024. The company has estimated adjusted operating expenses for the year to be within the range of $798 million to $808 million. Furthermore, an effective tax rate on adjusted earnings between 28.5% and 30.5% is expected. Capital expenditure for 2024 is projected to be between $51 million and $57 million.

Conclusion

CBOE Global Markets' impressive performance in the fourth quarter, despite facing challenges, demonstrates its resilience and ability to adapt to market conditions. With a focus on future growth and continued cost management, the company remains well-positioned in the industry.