The Chicago Board Options Exchange Holdings (CBOE, NASDAQ: CBOE), one of the largest operators in the US equity options market, has released its Q3 2016 earnings, which showed a stumble across key areas, including revenues that were lower by double digits YoY, per a CBOE earnings filing Friday.
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The group yielded a GAAP Operating revenue of just $156.2 million in Q3 2016, relative to $187.0 million in Q3 2015, or -16.5% YoY. Moreover, CBOE’s GAAP Net Income that was allocated to common stockholders was reported at $40.3 million in Q3 2016, declining off of $67.2 million in Q3 2015, which was good for a loss of -40.0% YoY.
This weakness extended to CBOE’s diluted earnings per share (EPS), which came in at just $0.5 during Q3 2015, down -38.3% YoY from $0.81 in Q3 2015. Part of the reason for such a pronounced decline was the standout performance of H2 in 2015, at the time a record high, and the inability to meet such a high benchmark in 2016.
Revenues and company statistics were not the only factors that were lower YoY in Q3 2016. Trading statistics at CBOE were also lower on this basis, despite seeing the same number of trading days as the year prior. The group’s average daily volume (for options and futures) yielded only 4.63 million in Q3 2016, down from 5.25 million in Q3 2015, or -11.8% YoY.
Furthermore, total trading volumes of options and futures at the CBOE during Q3 2016 fell to $296.3 million, down -11.7% YoY from $335.7 million in Q3 2015. Finally, CBOE’s average revenue per contract also stumbled this quarter, justifying a value of $0.378 during Q3 2016, relative to $0.431 in Q3 2015, or -12.3% YoY.
At the time of writing, shares of CBOE Holdings (NASDAQ:CBOE) stock are trading higher, up 1.11% to $62.85 during American trading on Friday.
