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Interactive Brokers stock falls 4% as Q3 earnings miss estimates

EditorRachael Rajan
Published 10/15/2024, 04:16 PM
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IBKR
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NEW YORK - Interactive Brokers (NASDAQ:IBKR) Group, Inc. (NASDAQ:IBKR) reported third-quarter earnings that missed analyst expectations, sending shares down nearly 4% in after-hours trading on Tuesday.

The automated global electronic broker posted adjusted earnings per share of $1.75 for the quarter ended September 30, falling short of the $1.81 consensus estimate. However, revenue came in at $1.365 billion, surpassing expectations of $1.34 billion.

Commission revenue jumped 31% year-over-year to $435 million, driven by higher customer trading volumes. Options, stock and futures trading volumes increased 35%, 22% and 13% respectively compared to the same period last year.

Net interest income rose 9% to $802 million, benefiting from higher customer margin loans and credit balances.

"We saw strong growth across our key metrics this quarter, with total customer accounts up 28% YoY to 3.12 million and customer equity increasing 46% to $541.5 billion," said Milan Galik, CEO of Interactive Brokers.

Despite the revenue beat, the earnings miss appeared to disappoint investors. Interactive Brokers stock was down 3.99% in after-hours trading following the release.

The company declared a quarterly cash dividend of $0.25 per share, payable on December 13 to shareholders of record as of November 29.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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