We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Interactive Brokers (IBKR) Q3 Earnings Beat, Revenues Fall Y/Y
Read MoreHide Full Article
Interactive Brokers Group’s (IBKR - Free Report) third-quarter 2021 adjusted earnings per share of 78 cents surpassed the Zacks Consensus Estimate of 75 cents. The bottom line reflects growth of 47.2% from the prior-year quarter.
The company recorded a decline in revenues and higher expenses in the quarter. Nevertheless, an increase in daily average revenue trades (DARTs) was witnessed, which aided results to an extent. Capital ratios also remained strong.
After considering non-recurring items, net income available to common shareholders (GAAP basis) was $42 million or 43 cents per share, down from $46 million or 58 cents per share in the prior-year quarter.
Interactive Brokers reported comprehensive income available to common shareholders of $33 million or 34 cents per share in the reported quarter compared with $54 million or 69 cents recorded in the prior-year quarter.
Revenues Decline, Expenses Rise
Total GAAP net revenues were $464 million, down 15.3% year over year. The top line missed the Zacks Consensus Estimate of $633 million. Adjusted net revenues were $650 million, up 25.5%.
Total non-interest expenses increased 7.5% year over year to $230 million. The rise was due to an increase in all cost components, except for execution, clearing and distribution fees, and customer bad debt.
Income before income taxes was $234 million, down 29.9% from the prior-year quarter.
Adjusted pre-tax profit margin was 65%, up from 59% a year ago.
In the reported quarter, total customer DARTs increased 24% year over year to 2.26 million. Total cleared DARTs jumped from 1.63 million to 2.02 million.
Additionally, customer accounts grew 57% from the year-ago quarter to 1,536,000.
Capital Position Strong
As of Sep 30, 2021, cash and cash equivalents (including cash and securities set aside for regulatory purposes) totaled $40.4 billion compared with $48 billion as of Dec 31, 2020.
As of Sep 30, 2021, total assets were $106.3 billion compared with $95.7 billion as of Dec 31, 2020. Total equity was $10 billion, up from $9 billion as of Dec 31, 2020.
Our Viewpoint
Interactive Brokers' efforts to develop proprietary software and an increase in emerging market customers are expected to aid financials. Also, its efficient capital deployment activities indicate strong liquidity and capital position.
Interactive Brokers Group, Inc. Price, Consensus and EPS Surprise
Performance and Upcoming Releases of Other Companies
Charles Schwab’s (SCHW - Free Report) third-quarter 2021 adjusted earnings of 84 cents per share surpassed the Zacks Consensus Estimate of 80 cents. The bottom line jumped 65% from the prior-year quarter.
Raymond James (RJF - Free Report) and LPL Financial (LPLA - Free Report) will release quarterly numbers on Oct 27 and Oct 28, respectively.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Interactive Brokers (IBKR) Q3 Earnings Beat, Revenues Fall Y/Y
Interactive Brokers Group’s (IBKR - Free Report) third-quarter 2021 adjusted earnings per share of 78 cents surpassed the Zacks Consensus Estimate of 75 cents. The bottom line reflects growth of 47.2% from the prior-year quarter.
The company recorded a decline in revenues and higher expenses in the quarter. Nevertheless, an increase in daily average revenue trades (DARTs) was witnessed, which aided results to an extent. Capital ratios also remained strong.
After considering non-recurring items, net income available to common shareholders (GAAP basis) was $42 million or 43 cents per share, down from $46 million or 58 cents per share in the prior-year quarter.
Interactive Brokers reported comprehensive income available to common shareholders of $33 million or 34 cents per share in the reported quarter compared with $54 million or 69 cents recorded in the prior-year quarter.
Revenues Decline, Expenses Rise
Total GAAP net revenues were $464 million, down 15.3% year over year. The top line missed the Zacks Consensus Estimate of $633 million. Adjusted net revenues were $650 million, up 25.5%.
Total non-interest expenses increased 7.5% year over year to $230 million. The rise was due to an increase in all cost components, except for execution, clearing and distribution fees, and customer bad debt.
Income before income taxes was $234 million, down 29.9% from the prior-year quarter.
Adjusted pre-tax profit margin was 65%, up from 59% a year ago.
In the reported quarter, total customer DARTs increased 24% year over year to 2.26 million. Total cleared DARTs jumped from 1.63 million to 2.02 million.
Additionally, customer accounts grew 57% from the year-ago quarter to 1,536,000.
Capital Position Strong
As of Sep 30, 2021, cash and cash equivalents (including cash and securities set aside for regulatory purposes) totaled $40.4 billion compared with $48 billion as of Dec 31, 2020.
As of Sep 30, 2021, total assets were $106.3 billion compared with $95.7 billion as of Dec 31, 2020. Total equity was $10 billion, up from $9 billion as of Dec 31, 2020.
Our Viewpoint
Interactive Brokers' efforts to develop proprietary software and an increase in emerging market customers are expected to aid financials. Also, its efficient capital deployment activities indicate strong liquidity and capital position.
Interactive Brokers Group, Inc. Price, Consensus and EPS Surprise
Interactive Brokers Group, Inc. price-consensus-eps-surprise-chart | Interactive Brokers Group, Inc. Quote
Currently, Interactive Brokers carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance and Upcoming Releases of Other Companies
Charles Schwab’s (SCHW - Free Report) third-quarter 2021 adjusted earnings of 84 cents per share surpassed the Zacks Consensus Estimate of 80 cents. The bottom line jumped 65% from the prior-year quarter.
Raymond James (RJF - Free Report) and LPL Financial (LPLA - Free Report) will release quarterly numbers on Oct 27 and Oct 28, respectively.