Cboe Reports Record Q1 2023 Earnings With A 60% Increase In Diluted EPS

Cboe Global Markets CBOE recently announced its earnings for the first quarter of 2023, showcasing record-breaking results. The company reported a 60% increase in diluted earnings per share (EPS), reaching $1.63, while achieving record adjusted diluted EPS of $1.90, representing a 10% increase. Net revenue also rose to a record high of $471.4 million, marking 13% year-over-year growth.

Brian N. Schell, Executive Vice President, Chief Financial Officer, and Treasurer of Cboe Global Markets, expressed his satisfaction with the company's first-quarter performance. He emphasized the significant progress made on key initiatives while successfully meeting financial objectives. The derivatives business played a crucial role in driving Cboe's growth, contributing to a notable 29% increase in net revenue compared to the previous year's first quarter. Data and Access Solutions also demonstrated steady growth, with a 9% year-over-year increase in net revenue.

Despite a 12% decrease in cash and spot markets net revenue due to the exceptional volumes experienced in the first quarter of 2022 compared to 2023, Cboe remains optimistic about the future. The company reaffirmed its organic total net revenue growth target of 7-9% for 2023 and expects the Data and Access Solutions segment’s organic net revenue to grow by 7-10%.

Cboe’s commitment to long-term revenue and earnings growth is reflected in its guidance for the fiscal year 2023. The company maintained its organic total net revenue growth expectation of 7-9%, surpassing the medium-term guidance range of 5-7%. Additionally, it anticipates a 0.5% contribution to net revenue growth from acquisitions held for less than a year. Cboe remains focused on expanding its Data and Access Solutions segment, projecting organic net revenue growth of 7-10% in line with medium-term guidance expectations.

In terms of expenses, Cboe reaffirmed its adjusted operating expense guidance for 2023 in the range of $769 to $779 million. This projection considers ongoing investments aimed at driving long-term shareholder value. Excluding the expected amortization of acquired intangible assets totaling $112 million, Cboe plans to reflect this exclusion in its non-GAAP reconciliation.

Heading further into 2023, Cboe seems positioned for continued success in the quarters ahead. The company's financial performance, with record net revenue and earnings, demonstrates its ability to navigate market dynamics effectively. As Cboe forges ahead, investors and stakeholders can anticipate further progress in achieving strategic objectives and potentially driving long-term growth. 

Click here to read the earnings report. 

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice. 

Featured Photo by Jeffrey Blum on Unsplash