Cboe Global Markets (CBOE) Misses Q4 EPS by 2c

Cboe Global Markets (NASDAQ: CBOE) reported Q4 EPS of $1.21, $0.02 worse than the analyst estimate of $1.23. Revenue for the quarter came in at $307.1 million versus the consensus estimate of $306.39 million.

2021 Fiscal Year Financial Guidance

The company provided guidance for the 2021 fiscal year as noted below. This guidance takes into account the company's acquisitions completed through December 31, 2020, including BIDS Trading; its investment in launching European derivatives trading and clearing; investments to support the company's growth initiatives; and one-time and non-recurring savings recognized in 2020.

• The company expects recently closed acquisitions to contribute net revenue growth in a range of 4 to 6 percentage points.
• Recurring non-transactional revenue, defined as access and capacity fees plus proprietary market data, is targeted to increase by 7 percent to 8 percent, from a base of $342 million in 2020, with organic growth targeted in a range of 6 to 7 percent.
• Adjusted operating expenses are expected to be in the range of $531 to $539 million. The guidance excludes the amortization of acquired intangible assets, which is expected to be $116 million. The company plans to reflect the exclusion of this amount in its non-GAAP reconciliation.¹
• Depreciation and amortization expense, which is included in adjusted operating expenses above, is expected to be in the range of $38 to $42 million, excluding the expected amortization of acquired intangible assets of $116 million.
• The effective tax rate² on adjusted earnings for the full year is expected to be in the range of 27.5 to 29.5 percent. Significant changes in trading volume, expenses, federal, state and local tax laws or rates and other items could materially impact this expectation.
• Capital expenditures are expected to be in the range of $60 to $65 million, reflecting expenditures associated with the company's planned trading floor relocation in 2021 and ongoing capacity and technology-related investments

For earnings history and earnings-related data on Cboe Global Markets (CBOE) click here.

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