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Interactive Brokers falls on mixed earnings

Published 16/01/2024, 22:22
© Reuters.
IBKR
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Interactive Brokers (NASDAQ:IBKR) stock fell in after-hours trade on Tuesday after the financial services company reported a mixed set of results for its fourth fiscal quarter.

The company posted Q4 EPS of $1.52, missing the consensus estimates of $1.54. Revenue for the three-month period stood at $1.14 billion, slightly above Wall Street’s projection of $1.13 billion.

Shares of IBKR fell 2.3% in after-hours trading.

Income before income taxes in the quarter came in at $816 million, with an adjusted figure of $831 million. In comparison, the year-ago quarter reported income before income taxes as $689 million, with an adjusted amount of $671 million.

Commission revenue rose 5% year-over-year to $348 million. Trading volumes varied among product types, with options and futures contract volumes experiencing increases of 21% and 4%, respectively, while stock share volume decreased by 22%.

Net interest income (NII) witnessed a notable 29% increase, reaching $730 million, attributed to higher benchmark interest rates, customer margin loans, and increased customer credit balances.

The Q3 pretax profit margin remained at 72%, both as reported and as adjusted. In comparison, during the year-ago quarter, the reported pretax margin was 71%, with the adjusted margin at 70%.

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