UPDATE: CBOE Holdings Q4 Profit Misses Expectations

reported downbeat earnings for the fourth quarter. The Chicago, Illinois-based company posted quarterly net income of $49.3 million, or $0.58 per share, compared to $45.6 million, or $0.52 per share, in the year-ago quarter. Its adjusted earnings came in at $0.64 per share. Its operating revenue climbed 17% to $166.5 million. However, analysts were expecting earnings of $0.66 per share on revenue of f $166.8 million. Transaction fees surged 24% in the quarter. Total trading volume rose to 361.2 million contracts, or 5.64 million contracts per day, versus 313.0 million contracts, or 4.89 million contracts per day, in the year-ago quarter. Adjusted operating expenses rose 12% to $77.7 million, while volume-based expenses climbed 24% to $20.2 million in the quarter. Adjusted operating margin widened 220 basis points to 53.4% from 51.2%. During the quarter, CBOE Holdings repurchased 489,500 shares of its common stock under its share repurchase program at an average price of $58.69 per share. "We are pleased to report that fourth-quarter trading across all product lines led to a new annual record for total options and futures traded at CBOE Holdings. Record trading in our premium proprietary products, S&P 500 Index options and CBOE Volatility Index futures and options, helped fuel our fourth consecutive year of record revenue and earnings," said Edward T. Tilly, CBOE Holdings Chief Executive Officer. CBOE shares rose 1.01% to close at $65.14 yesterday.