CBOE beats expectations in 3Q, shares jump

CHICAGO -- CBOE Holdings Inc. reported a decline in its third-quarter profit but the exchange operator did better than most on Wall Street had expected and shares jumped Thursday.

The Chicago company, which is the holding company for the Chicago Board Options Exchange and CBOE Futures Exchange, said its product line, market share gains and disciplined financial management helped it offset lower industry-wide trading. CBOE, which runs the VIX or "fear" index, also said it saw record volume in trading of VIX futures during the period.

"We are optimistic that we can continue to weather market challenges in the short-term, while focusing on product innovation and education to grow our business in the long-term," CEO William Brodsky said in a statement.

CBOE reported net income of $45.2 million, or 52 cents per share, compared with net income of $40.6 million, or 45 cents per share, last year. After adjusting for tax-related items, it earned 43 cents per share versus 50 cents per share.

Its operating revenues fell 11 percent to $128.3 million from $143.6 million in the third quarter of 2011. The decrease was driven by a drop in transaction fees due to lower trading but that was offset by higher prices for some services and other fees the CBOE charges.

Analysts polled by FactSet were expecting the company to earn 38 cents per share on an adjusted basis on revenue of $124 million.

Shares of CBOE increased 94 cents, more than 3 percent, to $30.41 by early afternoon. Its shares have been climbing steadily since May when they bottomed out for the year at $24.56.