(Adds details, shares, CEO quote)
May 9 CBOE Holdings Inc, the operator
of the largest U.S. options exchange, reported a quarterly
profit that beat analysts' estimates, as transaction fees more
Transaction fees rose to $256.4 million from $126.2 million,
as trading in futures and options rose in the first quarter.
Shares of CBOE, which agreed to buy Bats Global Markets Inc
for $3.2 billion last year, were up as much as 3.1
percent in morning trade, touching a record high of $84.81.
"Today's results reinforce our positive thesis of the
combined company's ability to deliver on synergy realization and
we remain encouraged by the growth prospects of CBOE's
proprietary product suite," wrote RBC analyst Peter Lenardos in
The operating expenses of the Chicago-based company also
more than doubled, primarily due to $65.2 million in
acquisition-related costs, leading to a 69.3 percent slump in
CBOE's net income allocated to common shareholders fell to
$15.1 million, or 16 cents per share, in the first quarter ended
March 31, from $49.2 million, or 60 cents per share, a year
Excluding items, the company earned 78 cents per share,
beating the average analysts' estimates of 69 cents, according
to Thomson Reuters I/B/E/S.
CBOE expects operating expenses to be in the range of $415
million to $423 million in the fiscal year 2017, compared with
pro forma adjusted operating expenses of $417 million in 2016.
"Our targets has always been 3 percent to 5 percent on
expense growth year-over-year. And so we're in that range," said
Chief Executive Edward Tilly on the earnings call.
CBOE's net revenue rose 35.2 percent to $193.4 million but
missed analysts' estimates of $200.9 million.
Total Options average daily volume rose 8.7 percent to 6.85
Up to Monday's close, CBOE's stock had risen 11.33 percent
(Reporting by Diptendu Lahiri in Bengaluru; Editing by Arun