Cboe Global Markets, Inc. CBOE is slated to report fourth-quarter 2024 earnings on Feb. 7, before the opening bell. CBOE beat earnings in each of the last four quarters, the average surprise being 2.66%.

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Factors to Consider

Improved Options’ performance, higher Data and access revenues and Market data revenues are likely to have aided the fourth-quarter performance of CBOE. 

Higher cash and spot markets and derivatives markets cost of revenues are likely to have favored the company’s top line in the fourth quarter. A decrease in liquidity payments on the Cboe Options exchanges, as a result of decreases in multi-listed options market share and ADV is expected to have partially offset the upside. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $527.26 million, indicating an increase of 5.6% from the year-ago quarter’s reported figure. 

Data and access revenues are likely to have benefited from higher access and capacity fees and proprietary market data fees. 

Market data revenues are expected to have been aided by increases in proprietary market data fees in the Options and Europe and Asia Pacific segments.

Access and capacity fees are likely to have been aided by increased logical and physical port fees in the North American Equities, Options, and Europe and Asia Pacific segments, driven by increased customer demand, led by the new North American Equities' dedicated core product. 

Higher net transaction and clearing fees driven by an increase in index options ADV, coupled with a rise in multi-listed options RPC, are likely to have favored Options’ performance in the to-be-reported quarter. The decrease in multi-listed options ADV is likely to have partially offset the increase.

The Zacks Consensus Estimate for fourth-quarter market data fees is pegged at $77 million, indicating growth of 5.5%, from the prior-year quarter’s reported figures. The Zacks Consensus Estimate for access and capacity fees is pegged at $97 million, indicating growth of 8.9% from the prior-year quarter’s reported figures. Our estimate for market data revenues is pegged at $73.9 million, while the same for access and capacity fees is pegged at $92.2 million.

Cboe Global is likely to have benefited from strong proprietary products, VIX futures, VIX and SPX options. Also, the company expects to witness solid growth in multi-listed options trading.

Continued share buybacks are expected to have aided the bottom line in the to-be-reported quarter.

The Zacks Consensus Estimate for fourth-quarter earnings per share is pegged at $2.15, indicating an increase of 4.3% from the prior-year quarter’s reported figure.

What the Zacks Model Says

Our proven model does not conclusively predict an earnings beat for Cboe Global this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This is not the case, as you can see below.

Earnings ESP: Cboe Global has an Earnings ESP of -1.20%. This is because the Most Accurate Estimate of $2.12 is pegged higher than the Zacks Consensus Estimate of $2.15. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: CBOE carries a Zacks Rank of 3 at present.

Stocks to Consider

Here are some finance stocks you may want to consider, as our model shows that these, too, have the right combination of elements to post an earnings beat:

American International Group, Inc. AIG has an Earnings ESP of +2.65% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for fourth-quarter 2024 earnings is pegged at $1.26, indicating a decline of 29.6% from the year-ago reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.

AIG’s earnings beat estimates in three of the last four quarters while missing in one.

Assurant, Inc. AIZ has an Earnings ESP of +9.37% and a Zacks Rank of 2 at present. The Zacks Consensus Estimate for fourth-quarter 2024 earnings is pegged at $3.96, indicating a decline of 13.5% from the year-ago reported figure. 

AIZ’s earnings beat estimates in each of the last four quarters.

Brighthouse Financial, Inc. BHF has an Earnings ESP of +0.82% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2024 earnings is pegged at $4.44, indicating a year-over-year increase of 52%. 

BHF’s earnings beat estimates in two of the last four quarters while missing in the other two.

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