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Interactive Brokers (IBKR) Up 10.9% Since Last Earnings Report: Can It Continue?
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A month has gone by since the last earnings report for Interactive Brokers Group, Inc. (IBKR - Free Report) . Shares have added about 10.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Interactive Brokers due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Interactive Brokers Q4 Earnings Rise Y/Y on Higher Revenues
Interactive Brokers’ fourth-quarter 2024 adjusted earnings per share of $2.03 beat the Zacks Consensus Estimate of $1.86. The bottom line indicated a jump of 33.6% from the prior-year quarter.
Results were primarily aided by an increase in revenues. The company recorded growth in customer accounts in the quarter, which, along with a rise in DARTs, was another tailwind. However, higher expenses hurt the results to some extent.
After considering non-recurring items, net income available to common shareholders (GAAP basis) was $217 million or $1.99 per share, up from $160 million or $1.48 in the prior-year quarter. Our estimate for net income was $199.6 million.
Interactive Brokers reported comprehensive income available to common shareholders of $153 million or $1.41 per share compared with $197 million or $1.83 in the prior-year quarter.
For 2024, adjusted earnings per share was $7.03, which surpassed the Zacks Consensus Estimate of $6.99. Moreover, the bottom line rose 22.3% from the previous year. Net income available to common shareholders (GAAP) was $755 million or $6.93 per share compared with $600 million or $5.67 in 2023. Our estimate for 2024 net income was $737.6 million.
Revenues Improve, Expenses Rise
Total GAAP net revenues for the quarter were $1.39 billion, up 21.8% year over year. The Zacks Consensus Estimate for the top line was $1.38 billion. Adjusted net revenues were $1.42 billion, up 23.9% on a year-over-year basis.
For 2024, total GAAP net revenues were $5.19 billion, up 19.5% year over year. The Zacks Consensus Estimate for the top line was $5.21 billion. Adjusted net revenues were $5.26 billion, up 20.4%.
Total non-interest expenses increased 7.4% year over year to $347 million. This rise was primarily due to execution, clearing and distribution fees costs, employee compensation and benefits charges, and general and administrative expenses. Our estimate for non-interest expenses was pegged at $318.7 million.
Income before income taxes was $1.04 billion, increasing 27.5% from the prior-year quarter.
The adjusted pre-tax profit margin was 76%, up from 72% a year ago.
In the reported quarter, total customer DARTs increased 61.2% year over year to 3.12 million. Our estimate for the metric was 2.48 million.
Customer accounts grew 30.2% from the year-ago quarter to 3,337,000. Our prediction for customer accounts was 3,066,000.
Strong Capital Position of Interactive Brokers
As of Dec. 31, 2024, cash and cash equivalents (including cash and securities set aside for regulatory purposes) totaled $68.1 billion compared with $68 billion as of Dec. 31, 2023.
As of Dec. 31, 2024, total assets were $150.5 billion compared with $128.4 billion as of Dec. 31, 2023. Total equity was $16.6 billion, up from $14.1 billion as of Dec. 31, 2023.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 7.55% due to these changes.
VGM Scores
At this time, Interactive Brokers has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Interactive Brokers has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Interactive Brokers belongs to the Zacks Financial - Investment Bank industry. Another stock from the same industry, JPMorgan Chase & Co. (JPM - Free Report) , has gained 6.2% over the past month. More than a month has passed since the company reported results for the quarter ended December 2024.
JPMorgan Chase & Co. reported revenues of $42.77 billion in the last reported quarter, representing a year-over-year change of +10.9%. EPS of $4.81 for the same period compares with $3.97 a year ago.
For the current quarter, JPMorgan Chase & Co. is expected to post earnings of $4.54 per share, indicating a change of -1.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for JPMorgan Chase & Co. Also, the stock has a VGM Score of F.
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Interactive Brokers (IBKR) Up 10.9% Since Last Earnings Report: Can It Continue?
A month has gone by since the last earnings report for Interactive Brokers Group, Inc. (IBKR - Free Report) . Shares have added about 10.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Interactive Brokers due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
Interactive Brokers Q4 Earnings Rise Y/Y on Higher Revenues
Interactive Brokers’ fourth-quarter 2024 adjusted earnings per share of $2.03 beat the Zacks Consensus Estimate of $1.86. The bottom line indicated a jump of 33.6% from the prior-year quarter.
Results were primarily aided by an increase in revenues. The company recorded growth in customer accounts in the quarter, which, along with a rise in DARTs, was another tailwind. However, higher expenses hurt the results to some extent.
After considering non-recurring items, net income available to common shareholders (GAAP basis) was $217 million or $1.99 per share, up from $160 million or $1.48 in the prior-year quarter. Our estimate for net income was $199.6 million.
Interactive Brokers reported comprehensive income available to common shareholders of $153 million or $1.41 per share compared with $197 million or $1.83 in the prior-year quarter.
For 2024, adjusted earnings per share was $7.03, which surpassed the Zacks Consensus Estimate of $6.99. Moreover, the bottom line rose 22.3% from the previous year. Net income available to common shareholders (GAAP) was $755 million or $6.93 per share compared with $600 million or $5.67 in 2023. Our estimate for 2024 net income was $737.6 million.
Revenues Improve, Expenses Rise
Total GAAP net revenues for the quarter were $1.39 billion, up 21.8% year over year. The Zacks Consensus Estimate for the top line was $1.38 billion. Adjusted net revenues were $1.42 billion, up 23.9% on a year-over-year basis.
For 2024, total GAAP net revenues were $5.19 billion, up 19.5% year over year. The Zacks Consensus Estimate for the top line was $5.21 billion. Adjusted net revenues were $5.26 billion, up 20.4%.
Total non-interest expenses increased 7.4% year over year to $347 million. This rise was primarily due to execution, clearing and distribution fees costs, employee compensation and benefits charges, and general and administrative expenses. Our estimate for non-interest expenses was pegged at $318.7 million.
Income before income taxes was $1.04 billion, increasing 27.5% from the prior-year quarter.
The adjusted pre-tax profit margin was 76%, up from 72% a year ago.
In the reported quarter, total customer DARTs increased 61.2% year over year to 3.12 million. Our estimate for the metric was 2.48 million.
Customer accounts grew 30.2% from the year-ago quarter to 3,337,000. Our prediction for customer accounts was 3,066,000.
Strong Capital Position of Interactive Brokers
As of Dec. 31, 2024, cash and cash equivalents (including cash and securities set aside for regulatory purposes) totaled $68.1 billion compared with $68 billion as of Dec. 31, 2023.
As of Dec. 31, 2024, total assets were $150.5 billion compared with $128.4 billion as of Dec. 31, 2023. Total equity was $16.6 billion, up from $14.1 billion as of Dec. 31, 2023.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 7.55% due to these changes.
VGM Scores
At this time, Interactive Brokers has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Interactive Brokers has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Interactive Brokers belongs to the Zacks Financial - Investment Bank industry. Another stock from the same industry, JPMorgan Chase & Co. (JPM - Free Report) , has gained 6.2% over the past month. More than a month has passed since the company reported results for the quarter ended December 2024.
JPMorgan Chase & Co. reported revenues of $42.77 billion in the last reported quarter, representing a year-over-year change of +10.9%. EPS of $4.81 for the same period compares with $3.97 a year ago.
For the current quarter, JPMorgan Chase & Co. is expected to post earnings of $4.54 per share, indicating a change of -1.9% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #1 (Strong Buy) for JPMorgan Chase & Co. Also, the stock has a VGM Score of F.