Lower expenses and increased trading volumes drive fourth-quarter growth

  • CBOE Global’s fourth-quarter earnings rose due to lower expenses and higher trading volumes
  • Adjusted earnings per share exceeded analyst expectations
  • Revenue declined by 3.6% to $968.7 million
  • Average daily volume of options contracts traded increased by 2.1% to 14.9 million
  • CBOE Global targets organic revenue growth of 5% to 7% for 2024
  • Adjusted operating expenses estimated to be between $798 million and $808 million for the year
  • Effective tax rate on adjusted earnings expected to be between 28.5% and 30.5%
  • Capital expenditure forecasted to be between $51 million and $57 million for 2024

Exchange operator CBOE Global Markets reported higher fourth-quarter earnings of $210.8 million, driven by lower operating expenses and increased trading volumes. Adjusted earnings per share exceeded analyst expectations at $2.06. However, revenue declined by 3.6% to $968.7 million. The average daily volume of options contracts traded on CBOE Global’s platforms increased by 2.1% to 14.9 million. Looking ahead, the company targets organic revenue growth of 5% to 7% for 2024. Adjusted operating expenses for the year are estimated to be between $798 million and $808 million. The effective tax rate on adjusted earnings is expected to be between 28.5% and 30.5%. CBOE Global also forecasts capital expenditure in the range of $51 million to $57 million for 2024.

Public Companies: CBOE Global Markets (CBOE)
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Factuality Level: 8
Justification: The article provides specific financial information about CBOE Global Markets’ fourth-quarter earnings, including the increase in earnings per share and the decrease in revenue. It also mentions the estimated average daily volume of options contracts traded and provides the company’s targets for organic revenue growth, adjusted operating expenses, effective tax rate, and capital expenditure for 2024. The information appears to be based on the company’s official statements and analyst estimates, which adds to its credibility. However, the article lacks additional context or analysis, which could have provided a more comprehensive understanding of the company’s performance.

Noise Level: 7
Justification: The article provides financial information about CBOE Global Markets’ fourth-quarter earnings, trading volumes, and revenue. It includes specific numbers and targets for the company’s future growth. However, it lacks analysis, context, and any mention of potential risks or challenges the company may face. The article also does not provide any actionable insights or solutions for readers.

Financial Relevance: Yes
Financial Markets Impacted: CBOE Global Markets

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article discusses the fourth-quarter earnings of CBOE Global Markets, highlighting lower operating expenses and higher trading volumes. There is no mention of any extreme events or their impact.

Reported publicly: www.marketwatch.com