November 6, 2024
Stock Brokers

IBKR Earnings: Interactive Brokers Gains after Releasing Q2 Results


Shares of Interactive Brokers (IBKR) gained in after-hours trading after the electronic investment broker reported earnings for its second quarter of Fiscal Year 2024. Earnings per share came in at $1.76, which beat analysts’ consensus estimate of $1.74 per share. However, sales increased by 23% year-over-year, with revenue hitting $1.23 billion. This missed analysts’ expectations of $1.266 billion.

Daily average revenue trades (DARTs) increased to 2.386M, compared to the previous year’s 1.865M – a 28% gain. In addition, customer trading volume grew, with options contracts surging by 35% year-over-year, while futures contracts and stock share volumes jumped by 10% and 26%, respectively. This led to a 26% increase in commission revenue, which came in at $406M, and a 28% growth in customer accounts to 2.92M.

Furthermore, net interest income rose to $792M from $694M in the same quarter a year earlier, as customer margin loans increased 32% to $55.1B.

Today’s strong results could have been anticipated by taking a quick look at IBKR’s website traffic. Indeed, the number of visitors jumped by 75.81% during the most recent quarter when compared to the same quarter of last year.

Is IBKR a Good Stock to Buy?

Turning to Wall Street, analysts have a Strong Buy consensus rating on IBKR stock based on six Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 48% rally in its share price over the past year, the average IBKR price target of $144.57 per share implies 16.94% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



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