CBOE Holdings Earnings: Here’s Why Investors are Excited Now

CBOE Holdings, Inc. (NASDAQ:CBOE) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.28%.

CBOE Holdings, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 22.73% to $0.54 in the quarter versus EPS of $0.44 in the year-earlier quarter.

Revenue: Rose 13.77% to $150.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: CBOE Holdings, Inc. reported adjusted EPS income of $0.54 per share. By that measure, the company beat the mean analyst estimate of $0.51. It beat the average revenue estimate of $149.32 million.

Quoting Management: “We are pleased to report another strong quarter at CBOE Holdings, with new all-time highs for operating revenue and earnings per share. Our strong results were driven by increased trading overall and our successful efforts to expand trading in our higher-margin proprietary products. Trading volume in VIX Index futures, which carry our highest fee per contract, reached a new quarterly record for the sixth consecutive quarter, while trading in VIX options and our S&P 500 options complex also continued to show strong growth,” said Edward T. Tilly, CBOE Holdings CEO. “We will remain focused on product development, extending our global customer reach and maintaining prudent fiscal management to deliver value to stockholders.”

Key Stats (on next page)…

Revenue increased 5.67% from $142.71 million in the previous quarter. EPS increased 8% from $0.50 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.48 to a profit $0.5. For the current year, the average estimate has moved up from a profit of $1.94 to a profit of $2 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)