Financial Data and Key Metrics Changes - In the fourth quarter, Interactive Brokers demonstrated strong financial performance, with significant growth in revenue and net income compared to the previous quarter [5]. Business Line Data and Key Metrics Changes - The company reported an increase in trading volume across its platforms, indicating robust activity in its brokerage services [5]. Market Data and Key Metrics Changes - Interactive Brokers experienced growth in client accounts, reflecting an expanding customer base and increased market participation [5]. Company Strategy and Development Direction and Industry Competition - The management emphasized a focus on enhancing technology and expanding service offerings to maintain a competitive edge in the brokerage industry [5]. Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, citing favorable market conditions and a strong demand for trading services as key drivers for growth [5]. Other Important Information - The company highlighted ongoing investments in technology to improve trading efficiency and customer experience [5]. Q&A Session Summary Question: What are the expectations for trading volumes in the upcoming quarters? - Management indicated that they anticipate continued strong trading volumes due to market volatility and increased retail participation [5]. Question: How is the company addressing competitive pressures in the industry? - The response highlighted the importance of technological advancements and customer service enhancements as primary strategies to counter competition [5].

Interactive Brokers Group, Inc. (IBKR) came out with quarterly earnings of $2.03 per share, beating the Zacks Consensus Estimate of $1.86 per share. This compares to earnings of $1.52 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 9.14%. A quarter ago, it was expected that this company would post earnings of $1.78 per share when it actually produced earnings of $1.75, delivering a surprise of -1.69%.Over the last four quarter ...

Core Insights - Interactive Brokers Group reported strong fourth-quarter results, exceeding Wall Street expectations in both earnings and revenue [2][6] - The company demonstrated significant growth in trading volumes, particularly in options and stock trading, which contributed to its financial performance [6][7] Financial Performance - Adjusted earnings per share (EPS) for Q4 2024 were $2.03, surpassing the consensus estimate of $1.84 and up 33.6% from $1.52 in Q4 2023 [3][6] - Adjusted revenue reached $1.424 billion, exceeding the anticipated $1.354 billion, marking a 23.9% increase from $1.149 billion in the previous year [3][6] - Net interest income rose to $807 million, a 10.5% increase from $730 million in Q4 2023 [3][7] - The pretax profit margin improved to 76%, up from 72% in the prior year, reflecting a 400 basis point increase [3][7] - Customer accounts grew by 30.5% to 3.34 million, indicating strong client acquisition [3][8] Business Overview - Interactive Brokers operates an electronic brokerage platform, providing technological solutions for traders and investors, facilitating low-cost and high-speed trade executions [4][5] - The firm offers access to over 150 markets and a wide range of tradable products, reinforcing its competitive position in the industry [5] Strategic Focus - The company is enhancing its proprietary technology and expanding global market access, focusing on maintaining low transaction costs and robust risk management systems [5][10] - Future initiatives include the development of new products like ForecastEx and the opening of new offices in markets such as Dubai, aligning with the company's growth strategy [10][11] Market Outlook - Management is optimistic about future growth, anticipating an increase in client accounts and heightened market activity linked to global events [12] - Forward guidance reflects expectations for continued customer growth and global expansion, with ongoing attention to regulatory changes and competitive dynamics [12]

[Financial & Business Highlights](index=1&type=section&id=Financial%20%26%20Business%20Highlights) Interactive Brokers reported strong Q4 2024 results with significant year-over-year growth in revenues and earnings, driven by increased commission revenue and net interest income, alongside robust growth in customer accounts and trading volumes Q4 2024 Key Financial Results (vs. Q4 2023) | Metric | Q4 2024 (Reported) | Q4 2023 (Reported) | Q4 2024 (Adjusted) | Q4 2023 (Adjusted) | | :--- | :--- | :--- | :--- | :--- | | Diluted EPS | $1.99 | $1.48 | $2.03 | $1.52 | | Net Revenues | $1,387 million | $1,139 million | $1,424 million | $1,149 million | | Income Before Income Taxes | $1,040 million | $816 million | $1,077 million | $831 million | - The Board of Directors declared a quarterly cash dividend of **$0.25 per share**, payable on March 14, 2025[4](index=4&type=chunk) Key Financial Drivers (Q4 2024 vs. Q4 2023) | Item | Change | Amount (Q4 2024) | Driver | | :--- | :--- | :--- | :--- | | Commission Revenue | +37% | $477 million | Higher customer trading volumes in options (+32%) and stocks (+65%) | | Net Interest Income | +11% | $807 million | Higher average customer margin loans and credit balances | | Other Fees and Services | +47% | $81 million | Increases in risk exposure fees and payments for order flow | | Execution, Clearing & Distribution Fees | +15% | $115 million | Higher SEC fee rate, new FINRA CAT fee, and higher trading volumes | | General & Administrative Expenses | +31% | $59 million | $9 million increase in advertising expenses | Key Business Metrics (vs. Q4 2023) | Metric | Value | Change (YoY) | | :--- | :--- | :--- | | Customer Accounts | 3.34 million | +30% | | Customer Equity | $568.2 billion | +33% | | Total DARTs | 3.12 million | +61% | | Customer Margin Loans | $64.2 billion | +45% | | Customer Credits | $119.7 billion | +15% | - The company's currency diversification strategy, which bases its net worth in a basket of 10 major currencies (GLOBALs), decreased comprehensive earnings by **$266 million** due to a **1.63%** decrease in the U.S. dollar value of the GLOBAL[6](index=6&type=chunk) - Other Income included a **$24 million** net gain from the investment in Tiger Brokers, resulting from a **$34 million** realized gain on a partial sale and a **$10 million** unrealized loss[7](index=7&type=chunk) [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements reflect significant year-over-year growth in total net revenues and net income for FY2024, alongside an expanded balance sheet with increased assets and equity [Consolidated Statements of Income](index=3&type=section&id=Consolidated%20Statements%20of%20Income) Consolidated Income Statement Highlights (in millions) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | Commissions | $477 | $348 | $1,697 | $1,360 | | Total Net Interest Income | $807 | $730 | $3,148 | $2,794 | | **Total Net Revenues** | **$1,387** | **$1,139** | **$5,185** | **$4,340** | | Total Non-interest Expenses | $347 | $323 | $1,490 | $1,271 | | **Income Before Income Taxes** | **$1,040** | **$816** | **$3,695** | **$3,069** | | Net Income | $969 | $739 | $3,407 | $2,812 | | **Net Income Available for Common Stockholders** | **$217** | **$160** | **$755** | **$600** | | **Diluted EPS** | **$1.99** | **$1.48** | **$6.93** | **$5.67** | [Consolidated Statements of Comprehensive Income](index=4&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Consolidated Comprehensive Income Highlights (in millions) | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | Net Income Available for Common Stockholders | $217 | $160 | $755 | $600 | | Other Comprehensive Income (Loss), net of tax | ($64) | $37 | ($53) | $30 | | **Comprehensive Income Available for Common Stockholders** | **$153** | **$197** | **$702** | **$630** | [Condensed Consolidated Statements of Financial Condition](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Financial%20Condition) Condensed Balance Sheet Highlights (in millions) | Metric | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $3,633 | $3,753 | | Receivables from customers, net | $64,432 | $44,472 | | **Total Assets** | **$150,518** | **$128,423** | | **Liabilities and Equity** | | | | Payables to Customers | $115,343 | $101,012 | | **Total Liabilities** | **$133,921** | **$114,356** | | **Total Equity** | **$16,597** | **$14,067** | [Operating Data](index=6&type=section&id=Operating%20Data) Operating data for Q4 2024 shows a significant surge in trading activity, with total executed orders increasing 71% year-over-year, driven by strong customer trading volumes and account growth, despite a decrease in average commission per order Executed Order Volumes (in 000's) | Period | Customer Orders | Total Orders | % Change (YoY) | | :--- | :--- | :--- | :--- | | 4Q2023 | 120,886 | 128,818 | - | | 4Q2024 | 196,433 | 219,653 | +71% | | 3Q2024 | 171,620 | 189,342 | - | | 4Q2024 vs 3Q2024 | +14% | +16% | - | Customer Trading Volumes (Q4 2024 vs Q4 2023) | Category | Q4 2024 Volume | % Change (YoY) | | :--- | :--- | :--- | | Options (contracts) | 356,255k | +32% | | Futures (contracts) | 51,662k | -3% | | Stocks (shares) | 95,910,447k | +65% | Customer Statistics (Q4 2024) | Metric | Value | % Change (YoY) | % Change (QoQ) | | :--- | :--- | :--- | :--- | | Total Accounts (thousands) | 3,337 | +30% | +7% | | Customer Equity (billions) | $568.2 | +33% | +5% | | Total Customer DARTs (thousands) | 3,118 | +61% | +15% | | Commission per Cleared Order | $2.72 | -15% | -4% | [Net Interest Margin](index=9&type=section&id=Net%20Interest%20Margin) For Q4 2024, the company's net interest margin (NIM) decreased to 2.23% from 2.41% year-over-year, despite a rise in total net interest income, primarily due to changes in annualized yields on interest-earning assets Net Interest Margin Analysis | Metric | Q4 2024 | Q4 2023 | | :--- | :--- | :--- | | Average Interest-Earning Assets | $148,361 M | $121,524 M | | Average Interest-Bearing Liabilities | $129,646 M | $106,521 M | | Net Interest Income | $830 M | $739 M | | **Net Interest Margin (NIM)** | **2.23%** | **2.41%** | Annualized Yields | Category | Q4 2024 | Q4 2023 | | :--- | :--- | :--- | | Segregated cash and securities | 4.54% | 5.07% | | Customer margin loans | 5.23% | 5.85% | | Customer credit balances | 3.08% | 3.56% | [Reconciliation of Non-GAAP Financial Measures](index=10&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) Non-GAAP financial measures are provided to offer a clearer view of core operating performance by excluding specific items, resulting in adjusted net revenues of **$1,424 million** and adjusted diluted EPS of **$2.03** for Q4 2024 - Management believes non-GAAP measures are important for evaluating operating performance by excluding items not indicative of core results, such as the currency diversification strategy, mark-to-market on investments, and TRA liability remeasurement[31](index=31&type=chunk) Q4 2024 GAAP to Non-GAAP Reconciliation (in millions) | Metric | GAAP | Adjustments | Adjusted (Non-GAAP) | | :--- | :--- | :--- | :--- | | Net Revenues | $1,387 | $37 | $1,424 | | Income Before Income Taxes | $1,040 | $37 | $1,077 | Q4 2024 Diluted EPS Reconciliation | Metric | Amount | | :--- | :--- | | Diluted EPS - GAAP | $1.99 | | Total Non-GAAP Adjustments | $0.04 | | **Adjusted Diluted EPS** | **$2.03** |

Core Viewpoint - Interactive Brokers Group, Inc. (IBKR) is expected to report improved fourth-quarter and full-year 2024 results, with earnings and revenues anticipated to rise year over year [1]. Earnings and Sales Projections - The Zacks Consensus Estimate for IBKR's earnings has increased by 8.8% to $1.86 per share, indicating a 22.4% rise from the previous year's quarter [4]. - The consensus estimate for sales is projected at $1.38 billion, suggesting a 20.8% increase [4]. Client Activity and Revenue Drivers - Client activity remained strong in Q4, with major indexes reaching all-time highs, driven by U.S. presidential election results and bullish market sentiments [5]. - The Zacks Consensus Estimate for commission revenues is $456.7 million, reflecting a 31.2% increase from the prior-year quarter [5]. Net Interest Income (NII) Expectations - High interest rates are expected to support IBKR's net interest income, with the consensus estimate at $822.4 million, implying a 12.7% increase [6]. Other Financial Estimates - The estimate for other loss is pegged at $10.5 million, compared to other income of $6 million in the prior-year quarter [7]. - Total non-interest expenses are anticipated to be $318.7 million, indicating a 1.3% decrease year over year [8]. Earnings Prediction Model - The quantitative model does not predict an earnings beat for IBKR this time, as it lacks a positive Earnings ESP and a Zacks Rank of 3 or better [9].

Group 1: Brokerage Recommendations - Interactive Brokers currently has an average brokerage recommendation (ABR) of 1.22, indicating a rating between Strong Buy and Buy, based on recommendations from nine brokerage firms, with eight of them being Strong Buy, representing 88.9% of all recommendations [2][4] - Brokerage recommendations have been shown to have little success in guiding investors towards stocks with the highest potential for price appreciation, suggesting that relying solely on these recommendations may not be advisable [4][9] - Analysts employed by brokerage firms tend to exhibit a strong positive bias in their ratings, issuing five "Strong Buy" recommendations for every "Strong Sell" recommendation, which may mislead investors [5][9] Group 2: Zacks Rank Comparison - Zacks Rank categorizes stocks into five groups based on earnings estimate revisions, with a strong correlation between these revisions and near-term stock price movements, making it an effective indicator of stock performance [7][10] - The Zacks Rank is updated more frequently than the ABR, as it reflects changes in earnings estimates promptly, providing timely insights into future price movements [11] - For Interactive Brokers, the Zacks Consensus Estimate for the current year has increased by 2.2% over the past month to $6.90, indicating growing optimism among analysts regarding the company's earnings prospects [12] Group 3: Investment Outlook - The recent change in the consensus estimate, along with other factors related to earnings estimates, has resulted in a Zacks Rank 2 (Buy) for Interactive Brokers, suggesting a positive investment outlook [13]

Company Overview - Interactive Brokers is a large online broker specializing in low-cost automated trading and investing [1] - The company has over 3.34 million accounts, with 69% registered as individual accounts [1] Growth and Market Position - The company has been consistently growing, indicating strong market presence and operational efficiency [1] Target Market and Strategy - Initially targeted at equity research with an emphasis on intrinsic value [1] - Prioritizes undervalued and growing companies, preferably in the early stages of their development [1]

Company Overview - Interactive Brokers Group, Inc. (IBKR) currently holds a Momentum Style Score of A, indicating strong potential for momentum investing [3] - The company has a Zacks Rank of 2 (Buy), which is associated with a history of outperforming the market [4] Price Performance - Over the past week, IBKR shares increased by 0.81%, while the Zacks Financial - Investment Bank industry declined by 2.37% [6] - In a longer time frame, IBKR's monthly price change is 6.94%, outperforming the industry's 5.46% [6] - Over the past quarter, IBKR shares rose by 26.05%, and over the last year, they increased by 108.38%, compared to the S&P 500's gains of 2.62% and 25.96%, respectively [7] Trading Volume - IBKR's average 20-day trading volume is 913,761 shares, which serves as a bullish indicator when combined with rising stock prices [8] Earnings Outlook - In the past two months, three earnings estimates for IBKR have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $6.81 to $6.90 [10] - For the next fiscal year, four estimates have moved upwards with no downward revisions during the same period [10] Conclusion - Considering the strong price performance, positive earnings outlook, and high Momentum Style Score, IBKR is positioned as a solid momentum pick for investors [12]

The most recent trading session ended with Interactive Brokers Group, Inc. (IBKR) standing at $185.85, reflecting a +1.76% shift from the previouse trading day's closing. The stock lagged the S&P 500's daily gain of 1.83%. Elsewhere, the Dow gained 1.65%, while the tech-heavy Nasdaq added 2.45%.Coming into today, shares of the company had gained 2.09% in the past month. In that same time, the Finance sector lost 3.1%, while the S&P 500 lost 3.31%.The upcoming earnings release of Interactive Brokers Group, I ...

Core Viewpoint - Interactive Brokers Group, Inc. (IBKR) is expected to report strong quarterly earnings and revenue growth, with earnings per share projected at $1.81, a 19.1% increase year-over-year, and revenues forecasted at $1.33 billion, reflecting a 17.1% increase compared to the same period last year [1]. Earnings Estimates - Over the last 30 days, the consensus EPS estimate has been revised upward by 0.8%, indicating analysts' positive reassessment of their initial forecasts [2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate revisions and short-term stock price performance [3]. Key Metrics Projections - Analysts project 'Customer Statistics - Total Accounts' to reach 3.2 million, up from 2.56 million in the same quarter last year [5]. - The consensus estimate for 'Average interest-earning assets' is $138.37 billion, compared to $121.52 billion reported in the same quarter of the previous year [5]. - 'Customer Statistics - Cleared Customers - Commission per Cleared Commissionable Order' is expected to be $2.81, down from $3.19 a year ago [6]. - 'Customer Statistics - Customer Equity' is projected to reach $546.27 billion, an increase from $426 billion year-over-year [6]. Revenue Components - 'Other fees and services' are expected to reach $63.07 million, compared to $55 million in the same quarter last year [7]. - 'Commissions' are projected at $456.68 million, up from $348 million a year ago [7]. - 'Total net interest income' is forecasted to be $822.41 million, compared to $730 million in the previous year [8]. - 'Interest income' is expected to reach $1.77 billion, compared to $1.70 billion reported in the same quarter last year [8]. Market Performance - Shares of Interactive Brokers have shown a return of +2.1% over the past month, contrasting with the Zacks S&P 500 composite's -3.3% change, indicating a potential outperformance in the near future [8].