CBOE Holdings Shares Marginally Lower Despite Record Q4 Results (CBOE)

Shares of CBOE Holdings Inc. (NASDAQ: CBOE) have edged lower in early trading today even as the company reported record fourth-quarter financial results.

Key Points

  • CBOE reports record fourth-quarter GAAP net income
  • The company’s operating revenue for the quarter rise 8%
  • CBOE in talks with SEC to settle a previously disclosed probe

William J. Brodsky, Chairman and CEO of CBOE Holdings, said that the company’s record-setting financial results for the fourth quarter and strong overall performance for 2012 were made noteworthy given the year’s well-known macro challenges. Indeed 2012 was difficult year as economic uncertainty led to muted trading activities.

Brodsky said that CBOE’s ability to leverage its higher-margin, proprietary products and to effectively manage its resources enabled it to return increased value to stockholders while continuing to invest in product development, trading technology and investor education.

For the fourth quarter, CBOE reported GAAP net income of $39.2 million, or $0.45 per share, a record and up from $31.3 million, or $0.35 per share reported for the same period in the previous year. The company’s adjusted net income for the quarter was $38.9 million, or $0.45 per share, compared to $33.2 million, or $0.37 per share reported for the same period in the previous year. Operating revenue for the quarter was $130.1 million, representing an increase of 8% over the same period in the previous year.

For the full year 2012, CBOE reported GAAP net income of $155.4 million, or $1.78 per share, up 14% over 2011. Total operating revenue for 2012 rose to $512.3 million from $508.1 million in 2013.

At last check, CBOE shares were trading 0.12% lower at $34.26.

About CBOE Holdings Inc.

CBOE Holdings Inc. is an operator of markets for trading of listed options contracts.

edliston

edliston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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