Intel stock spikes after report of possible US government stake
Investing.com -- Interactive Brokers Group (NASDAQ:IBKR) on Thursday reported second-quarter earnings and revenue that beat Wall Street estimates, driven by a jump in customer trading activity and steady gains in net interest income.
Shares popped nearly 5% in premarket trading Friday.
The electronic brokerage posted earnings per share of $0.51, above the $0.46 expected by analysts.
Revenue climbed to $1.48 billion from $1.23 billion a year earlier, also topping estimates.
Commission revenue rose 27% to $516 million, lifted by higher trading volumes across stocks, options and futures.
Net interest income increased 9% to $860 million, helped by higher customer credit balances and securities lending, and included a one-time $26 million tax credit.
Customer accounts grew 32% to 3.87 million, while daily average revenue trades (DARTs) surged 49% to 3.55 million. Customer equity rose 34% to $664.6 billion.
Pretax margin held steady at 75%, underscoring continued efficiency. General and administrative expenses rose 17%, reflecting higher advertising costs.
Margin balances averaged $60.9 billion in the second quarter, ending June at $65.1 billion—7% above the quarterly average.
Jefferies analysts said Interactive Brokers reported "solid results across the board."
"Improved retail engagement has translated directly into higher margin utilization throughout the quarter," they wrote. They note that the end-of-period margin balances "set up Q3 positively."
Interactive Brokers declared a quarterly dividend of $0.08 per share, payable Sept. 12.
(Additional reporting by Vahid Karaahmetovic.)