Cboe improves 2022 net sales growth outlook after second-quarter revenue beat consensus (BATS:CBOE)

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Cboe Global Markets (BAT: CBOE) on Friday raised its full-year organic net sales forecast after stronger-than-expected second-quarter revenue.

Still, CBOE shares are falling 2.7% out of the gate as second quarter earnings fell short Wall Street expectations.

For 2022, the options exchange expects organic net revenue growth of 9 to 11 percentage points, down from 5 to 7 percentage points from the previous target.

Organic net revenue for its Data and Access Solutions segment is expected to grow approximately 10% to 13% in 2022, compared to 8% to 11% in the previous view.

It projects adjusted operating expenses of $659-667 million in 2022, up from $617-625 million in the previous forecast.

During the second quarter, adjusted EPS of $1.67 beat analysts’ average estimate of $1.69, but rose from $1.38 a year ago.

Net revenue of $424.1 million in the second quarter, however, beat the consensus of $422.6 million and rose from $350.6 million in the second quarter of last year.

Q2 spending was $661.5m, compared to $160.6m in Q2 2021.

Q2 EBITDA recorded a loss of $202.0m compared to a gain of $231.8m in Q2 2021.

For its Options segment, average daily volume was 39.4 million contracts as of June 30, compared to 42.5 million as of March 31.

The ADV of US stocks for the second quarter decreased to 12.6 billion contracts from 12.9 billion in the previous quarter.

Take a look at Cboe’s second quarter earnings call presentation.

Ann J. Cox