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GREENWICH, Conn. - Interactive Brokers Group, Inc. (NASDAQ:IBKR), a global electronic brokerage firm with a market capitalization of $74 billion, disclosed its Electronic Brokerage monthly performance metrics for April, revealing significant growth in trading activity and client equity. The company reported a 63% increase in Daily Average Revenue Trades (DARTs) compared to the same period last year, reaching 3.818 million. This also marked a 10% rise from the previous month. According to InvestingPro data, the company maintains an impressive "GREAT" financial health score, supported by strong revenue growth of 18.2% over the last twelve months.
Client equity saw a substantial rise, ending at $588.1 billion, which is a 28% increase year-over-year and 3% higher than the preceding month. Despite a 15% annual increase in client margin loan balances to $58.2 billion, there was a 9% decline from March to April. Client credit balances, including $5.0 billion in insured bank deposit sweeps, climbed to $132.8 billion, up 26% from the prior year and 6% from the previous month. InvestingPro analysis reveals the company has maintained dividend payments for 16 consecutive years, demonstrating consistent financial stability. Get access to the full Interactive Brokers Pro Research Report, along with 1,400+ other detailed company analyses, by subscribing to InvestingPro.
The number of client accounts grew to 3.71 million, a 32% jump compared to last year and a 3% increase from March. On average, there were 227 annualized cleared DARTs per client account. The average commission per cleared Commissionable Order stood at $2.75, with stocks, equity options, and futures at $2.16, $3.63, and $3.75 respectively. Trading at a P/E ratio of 23.8, InvestingPro analysis suggests the stock is currently slightly undervalued based on its Fair Value model, with 8 additional ProTips available for subscribers.
Interactive Brokers also highlighted its cost transparency, reporting that the total cost of executing and clearing U.S. Reg.-NMS stocks for IBKR PRO clients was approximately 4.1 basis points of trade money, measured against a daily VWAP benchmark for April.
In line with its currency diversification strategy, the company noted that the value of the GLOBAL, a basket of 10 major currencies in which the firm holds its equity, increased by 0.96% in April and by 1.715% year-to-date.
This report is based on a press release statement and provides a snapshot of Interactive Brokers’ performance, reflecting robust growth in several key areas of its brokerage business for the month of April. The company continues to provide automated trade execution and custody services across a wide range of markets and instruments globally.
In other recent news, Interactive Brokers Group reported its first-quarter 2025 earnings, surpassing analyst expectations with an earnings per share (EPS) of $1.88, slightly above the forecast of $1.87, and revenue of $1.43 billion, exceeding the anticipated $1.38 billion. The company achieved record quarterly net revenues and pretax income, with commissions increasing by 36% to over $500 million and a 4-for-1 stock split planned alongside a dividend increase from $1 to $1.28. Despite these positive results, Piper Sandler adjusted its price target for Interactive Brokers, reducing it to $182 from $192, while maintaining an Overweight rating due to higher than anticipated compensation expenses and lower net interest income. BofA Securities also revised its price target to $243 from $265, retaining a Buy rating, reflecting concerns over ongoing tariff disputes impacting international demand for US assets. Additionally, Interactive Brokers launched a tax-efficient First Home Savings Account (FHSA) in Canada, offering a tax-advantaged method for Canadians to save for homeownership. The company’s annual stockholders’ meeting resulted in strong approval for board members and executive compensation, indicating shareholder confidence in its governance practices.
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