Written by StockNews.com

CBOE Holdings, Inc. (Nasdaq:CBOE) early Tuesday posted mixed first quarter earnings results, as it navigates through a difficult market environment where volatility and overall options activity are in decline.

The Chicago-based options and futures exchange operator reported Q1:

• earnings per share (EPS) of $0.78, which was $0.09 better than the Wall Street consensus estimate of $0.69 [while]
• revenues jumped 35.2% from last year to $193.4 million, missing analysts’ view for $208.3 million...

Looking ahead, CBOE said:

• its capital expenditures (capex) would be between $55 million and $60 million for the year, as it continues to digest its recent acquisition of the BATS stock exchange.

The company commented via press release:

“While the Bats integration is a top priority, we also remain laser focused on growing our proprietary products.

Despite record low realized volatility in the first quarter, trading on VIX futures rose 18% while trading in our index options increased 7% compared with first-quarter 2016, led by record trading in SPX options and significantly outpacing the options industry, which posted a 4% decline in average daily volume.”

...Year-to-date, CBOE has gained 11.69%, versus a 7.68% rise in the benchmark S&P 500 index during the same period.

CBOE currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #2 of 5 stocks in the Financial Marketplaces category.