Interactive Brokers (IBKR) Q4 Earnings: Analyzing Key Metrics Against Estimates

Interactive Brokers Group, Inc. (IBKR) has recently reported its earnings for the fourth quarter ending December 2024. The company recorded a revenue of $1.42 billion for this quarter, marking an impressive year-over-year increase of 25%. Additionally, the earnings per share (EPS) stood at $2.03, a significant rise from $1.52 in the same period last year.

This revenue figure exceeded the Zacks Consensus Estimate of $1.38 billion, resulting in a positive surprise of +3.50%. Furthermore, the EPS also surpassed analysts' expectations by +9.14%, with the consensus EPS estimate being $1.86.

Investors often closely examine revenue and earnings changes from year to year, as well as their alignment with Wall Street expectations, to gauge the company's future performance. However, some key metrics can provide a clearer insight into the financial health of Interactive Brokers.

These metrics, which impact both the top and bottom lines of a company, offer valuable information when compared to annual figures and analyst estimates. By analyzing these key indicators, investors can better predict the stock's price movements.

Key Metrics Overview

Here are some of the important metrics from Interactive Brokers' latest quarter, along with comparisons to analyst predictions:

• Net Interest Margin: The margin stood at 2.2%, slightly below the average estimate of 2.4% from two analysts.
• Total Accounts: The total number of customer accounts reached 3.34 million, exceeding the forecast of 3.2 million from two analysts.
• Average Interest-Earning Assets: These assets totaled $148.36 billion, surpassing the estimated $138.37 billion.
• Total Customer DARTs: The total daily average revenue trades (DARTs) came in at 3.12 million, above the average estimate of 2.8 million from two analysts.
• Commission per Cleared Order: The average commission per cleared commissionable order was $2.72, lower than the expected $2.81 based on two analysts' estimates.
• Customer Equity: Total customer equity was recorded at 568.2 billion, exceeding the analyst estimate of 546.27 billion.
• Other Fees and Services: The revenue from other fees and services reached $81 million, considerably higher than the forecast of $63.07 million from three analysts.
• Commissions: Commissions generated totaled $477 million, above the average estimate of $456.68 million.
• Total Net Interest Income: This stood at $807 million, slightly below the average estimate of $822.41 million from three analysts.
• Interest Income: The company achieved an interest income of $1.86 billion, which was above the estimated $1.77 billion.

Considering these metrics provides a more nuanced understanding of how Interactive Brokers performed during the quarter.

Stock Performance and Outlook

In terms of stock performance, shares of Interactive Brokers have seen a return of +7% over the past month, significantly outperforming the S&P 500 composite, which saw a modest increase of +1.2% during the same period. Currently, Interactive Brokers holds a Zacks Rank #2 (Buy), indicating a potential for future outperformance compared to the broader market.

This analysis of Interactive Brokers’ earnings and key metrics indicates a generally positive outlook as the company continues to grow and outperform estimates.

Earnings, Stocks, Performance