Market Performance and Client Growth - The bull market has significantly benefited Interactive Brokers, with its stock up 80% in 2024, outperforming the S&P 500's 23% return [1] - The company serves a record 3 1 million client accounts as of Q3 2024, a 31% increase year-over-year, marking the strongest quarter since the meme stock frenzy in Q1 2021 [2] - Client equity reached $541 billion in Q3 2024, up 46% year-over-year, driven by both market appreciation and new deposits [2] Trading Activity and Revenue Growth - Trading activity surged in Q3 2024, with options, stock, and futures volumes growing 35%, 22%, and 13% year-over-year, respectively [4] - Total revenue for Q3 2024 was $1 36 billion, a 19% increase year-over-year, with commission revenue up 31% to $435 million due to strong trading volumes [5] - Net interest revenue grew 9% to $802 million in Q3 2024, but future growth may be hindered by Federal Reserve rate cuts [6] Financial Position and Valuation - Interactive Brokers had $55 8 billion in outstanding margin loans in Q3 2024, up 28% year-over-year, reflecting bullish investor sentiment [3] - The company's segregated cash (client money) on its balance sheet increased to $35 2 billion in Q3 2024, up from $26 3 billion in the year-ago quarter [6] - Despite a 73% stock price gain in 2024, the company trades at a P/E ratio of 22 3, a 10% discount to the S&P 500's P/E of 24 7 [7] Future Outlook - Falling interest rates may pressure Interactive Brokers' interest revenue, but higher client equity and trading volumes could offset this decline [6][8] - Analysts expect no growth in earnings per share for 2025, but record commission revenue could support further stock price gains [7][8]

My articles are written with a mind to owning a stock for years, not trying to predict price movements in a few months. I don't do target prices; I do valuations.I first entered investing in 2020 as an individual value investor, keen to understand the fundamentals of businesses and buy their shares at attractive prices. From May 2022 to May 2023, I worked as an investment advisory representative at Fidelity Investments. I am now self-employed through other ventures.Part of my technique is to write an articl ...

Interactive Brokers Group’s (IBKR) third-quarter 2024 adjusted earnings per share of $1.75 reflects a rise of 12.9% from the prior-year quarter’s actual.  The Zacks Consensus Estimate for the metric was $1.78.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Results were primarily aided by an increase in revenues. The company recorded growth in customer accounts in the quarter, which, along with a rise in daily average revenue trades (DARTs), was another tailwind. However, higher expe ...

Interactive Brokers (NASDAQ: IBKR ) has been growing their introducing broker business, attracting more brokers to its platform. Interactive Brokers is able to provide competitive pricing to their customers thanks to their business automation. I am initiating with a ‘Buy’ ratingMore than 15 years of professional investment experience in global equities across all sectors. My investment style is fundamental, bottom-up, long-term, and quality growth-oriented. I am seeking companies specializing in niche marke ...

Interactive Brokers Group, Inc. (NASDAQ:IBKR) Q3 2024 Results Conference Call October 15, 2024 4:30 PM ET Company Participants Nancy Stuebe - Director of Investor Relations Thomas Peterffy - Founder and Chairman Milan Galik - President and Chief Executive Officer Paul Brody - Chief Financial Officer Conference Call Participants Patrick Moley - Piper Sandler James Yaro - Goldman Sachs Dan Fannon - Jefferies LLC Chris Allen - Citi Brennan Hawken - UBS Benjamin Budish - Barclays Macrae Sykes - GAMCO Operator G ...

For the quarter ended September 2024, Interactive Brokers Group, Inc. (IBKR) reported revenue of $1.37 billion, up 19.2% over the same period last year. EPS came in at $1.75, compared to $1.55 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $1.32 billion, representing a surprise of +3.30%. The company delivered an EPS surprise of -1.69%, with the consensus EPS estimate being $1.78.While investors scrutinize revenue and earnings changes year-over-year and how they com ...

Interactive Brokers Group, Inc. (IBKR) came out with quarterly earnings of $1.75 per share, missing the Zacks Consensus Estimate of $1.78 per share. This compares to earnings of $1.55 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.69%. A quarter ago, it was expected that this company would post earnings of $1.69 per share when it actually produced earnings of $1.76, delivering a surprise of 4.14%.Over the last four quarter ...

Financial Performance - GAAP diluted EPS for Q3 2024 was $1.81, up from $1.56 in the year-ago quarter, while adjusted EPS was $1.75 compared to $1.55[1] - Net revenues for Q3 2024 reached $1,365 million, a 19% increase from $1,145 million in the same quarter last year[1][2] - Adjusted net revenues for Q3 2024 were $1.327 billion, up from $1.139 billion in Q3 2023, marking a growth of 16.6%[27] - Adjusted diluted EPS for Q3 2024 was $1.75, compared to $1.55 in Q3 2023, an increase of 12.9%[29] - Net interest income for Q3 2024 was $826 million, compared to $744 million in Q3 2023, reflecting an increase of 11.0%[24] - Adjusted income before income taxes for Q3 2024 was $949 million, compared to $834 million in Q3 2023, reflecting a growth of 13.8%[27] Revenue Sources - Commission revenue increased by 31% to $435 million, driven by a 35% rise in customer trading volume in options[2] - Net interest income rose 9% to $802 million, supported by higher customer margin loans and credit balances[2] Customer Metrics - Customer accounts grew by 28% to 3.12 million, and customer equity surged 46% to $541.5 billion[4] - Total customer DARTs (Daily Average Revenue Trades) rose to 2,703 thousand, a 42% increase from 1,907 thousand year-over-year[22] - Average DARTs per account (annualized) improved to 198, up 10% from 180 in the previous year[22] - Customer margin loans increased to $54.647 billion in Q3 2024, up from $42.853 billion in Q3 2023, a rise of 27.6%[24] - Customer credit balances rose to $106.865 billion in Q3 2024, compared to $95.506 billion in Q3 2023, an increase of 11.9%[24] Operational Metrics - Total Daily Average Revenue Trades (DARTs) increased by 42% to 2.70 million[4] - Executed order volumes for 3Q2024 showed a total of 189,342 orders, a 49% increase compared to 127,375 orders in 3Q2023[18] - Options contracts executed in 3Q2024 reached 344,540, a 34% increase from 256,481 contracts in 3Q2023[19] Expenses and Liabilities - General and administrative expenses increased by 67% to $75 million, primarily due to a one-time charge related to the consolidation of European subsidiaries[3] - Total liabilities increased to $132,448 million, up from $114,356 million, marking a 15.8% rise[16] Equity and Assets - Total equity stood at $16.1 billion as of September 30, 2024[3] - Total assets increased to $148,526 million, up from $128,423 million, representing a growth of 15.7%[16] - Noncontrolling interests increased to $11,918 million, compared to $10,483 million, indicating a growth of 13.7%[16] Dividend and Earnings Strategy - The company declared a quarterly cash dividend of $0.25 per share, payable on December 13, 2024[3] - The currency diversification strategy contributed an increase of $178 million to comprehensive earnings this quarter[5] Interest Metrics - Average interest-earning assets increased to $138.709 billion in Q3 2024, up from $119.906 billion in Q3 2023, representing a growth of 15.7%[24] - Net interest margin (NIM) for Q3 2024 was 2.37%, slightly down from 2.46% in Q3 2023[24] - The annualized yield on customer margin loans was 5.73% in Q3 2024, slightly down from 5.77% in Q3 2023[24] Adjustments - Total non-GAAP adjustments for Q3 2024 amounted to $(38) million, impacting adjusted net revenues and income before income taxes[27]

Core Points - A federal appeals court is fast-tracking the Commodity Futures Trading Commission's (CFTC) case against Kalshi regarding the legality of offering U.S. political election contracts [1][2] - Kalshi and Interactive Brokers are currently offering various political contracts, including bets on the U.S. presidential election and congressional races [1] - The CFTC has expressed concerns that election contracts could be manipulated and may undermine public trust in election integrity [2][3] Legal Proceedings - The CFTC has a tight schedule for legal briefs, with the CFTC required to file by Wednesday and Kalshi to respond by November 15 [1][2] - Oral arguments are expected to be scheduled shortly after the briefs are filed, which is unusual for federal appeals [2] - The CFTC previously lost a lawsuit attempting to block Kalshi from offering congressional control contracts but quickly appealed the ruling [3] Market Activity - Kalshi has resumed offering contracts related to congressional control and the presidential election, with over $7 million booked in contracts for the presidential election outcome as of Monday [4]

Interactive Brokers Group, Inc. (IBKR) is set to report tthird-quarter 2024 results on Oct. 15, after market close. Its earnings and revenues are expected to have improved year over year. Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar. In the last reported quarter, Interactive Brokers surpassed the Zacks Consensus Estimate. Results benefited from higher total GAAP net revenues, growth in customer accounts and an increase in daily average revenue trades (DARTs). IBKR has a decent ea ...