Is a Beat in the Cards for Cboe Global This Earnings Season?

Cboe Global Markets, Inc. CBOE is expected to register an improvement in its top and bottom lines when it reports first-quarter 2025 results on May 2, before the opening bell.The Zacks Consensus Estimate for CBOE’s first-quarter revenues is pegged at $549.80 million, indicating 9.5% growth from the year-ago reported figure.The consensus estimate for earnings is pegged at $2.34 per share. The Zacks Consensus Estimate for CBOE’s first-quarter earnings has moved up 7.8% in the past 30 days. The estimate suggests a year-over-year increase of 8.8%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)What the Zacks Model Unveils for CBOEOur proven model predicts an earnings beat for Cboe Global this time around. This is because the stock has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) that increases the chances of an earnings beat.Earnings ESP: Cboe Global has an Earnings ESP of +0.80%. This is because the Most Accurate Estimate of $2.36 is pegged higher than the Zacks Consensus Estimate of $2.34. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.Cboe Global Markets, Inc. Price and EPS Surprise Cboe Global Markets, Inc. price-eps-surprise | Cboe Global Markets, Inc. QuoteZacks Rank: CBOE carries a Zacks Rank #2 at present.Factors Likely to Shape Q1 Results of CBOEStrong index options growth, higher transaction and clearing fees, access and capacity fees, market data fees and regulatory fees are likely to have aided the first-quarter performance of CBOE. Solid volumes across Derivatives business, strong volumes across Cash and Spot Markets, growth of Data Vantage business and more disciplined expense management are expected to have favored the company’s top line in the first quarter. Cboe Data Vantage is likely to have benefited from increases in all three components of Data Vantage business, namely, real-time market data, analytics, and indices.Healthy trading volumes and growth across all of the regional equities markets are expected to have favored Cash and Spot Markets. Growing customer base, demand for access to the U.S. market, and an increasing demand for options are likely to have benefited the Derivatives business.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.Proprietary market data fees are expected to have been aided by increases in the Options, North American Equities, and Europe and Asia Pacific segments. The Zacks Consensus Estimate for first-quarter market data fees is pegged at $76 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 7.8% from the prior-year quarter’s reported figures. Our estimate for market data revenues is pegged at $78.1 million, while the same for access and capacity fees is pegged at $97.5 million.Higher multi-listed options transaction fees are likely to have favored Options’ performance in the to-be-reported quarter.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.Other Stocks to ConsiderHere are some other 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:Root, Inc. ROOT has an Earnings ESP of +25.84% and sports a Zacks Rank of 1 at present. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at 45 cents, indicating an increase of 207% from the year-ago reported figure. You can see the complete list of today’s Zacks #1 Rank stocks here.ROOT’s earnings beat estimates in each of the last four quarters.Assurant, Inc. AIZ has an Earnings ESP of +1.53% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at $3, indicating a decrease of 37.2% from the year-ago reported figure. AIZ’s earnings beat estimates in each of the last four quarters.Lemonade, Inc. LMND has an Earnings ESP of +3.40% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for first-quarter 2025 loss per share is pegged at 94 cents, indicating a decline of 40.3% from the year-ago reported figure. LMND’s earnings beat estimates in each of the last four quarters.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Assurant, Inc. (AIZ): Free Stock Analysis Report Cboe Global Markets, Inc. (CBOE): Free Stock Analysis Report Lemonade, Inc. (LMND): Free Stock Analysis Report Root, Inc. (ROOT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks