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 ...

Financial Data and Key Metrics Changes - The company reported record net revenues and pretax income for Q3 2024, with commissions rising to a record $435 million and net interest income reaching a quarterly record of $802 million, despite interest rate cuts in several countries [14][21] - Total assets increased by 23% year-over-year to $148 billion, driven by strong growth in margin lending and new account growth, which propelled customer credit balances by 19% to a record level [18][19] - The pretax profit margin was reported at 72%, both as reported and adjusted, reflecting strong financial performance [18] Business Line Data and Key Metrics Changes - Options and futures volumes reached new quarterly highs, with options contract volumes up 35% year-over-year and futures contract volumes up 13% [20] - The company added 196,000 new accounts in Q3, contributing to a 46% increase in client equity to $541.5 billion [7][8] - Commission growth was fastest for proprietary traders, while net interest income growth was led by individual clients and financial advisers [9] Market Data and Key Metrics Changes - The S&P 500 rose 5.5% in Q3, with options contract volumes in the industry up 12% year-over-year, reaching a new record [6] - Overall U.S. industry volumes were up compared to last year, although slightly down from the previous quarter, as the Magnificent Seven stocks contributed only 12% to the S&P's gain this quarter [6] Company Strategy and Development Direction - The company completed the merger of IB Central Europe and IB Ireland, expecting annual savings of $7 million from this consolidation [9] - A licensed office was opened in Dubai to solidify the company's presence in the Middle East, aiming to attract sophisticated accounts and hedge funds [10][64] - The company launched ForecastEx, a forecast contract exchange, which is expected to attract new clients and enhance the product offering [12][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about account growth despite anticipated declines in net interest income due to lower interest rates, highlighting the potential offset from new accounts and increased trading activity [53] - The company expects increased volatility and trading activity as the U.S. elections approach, which could positively impact commission income [68] - Management noted that the recent Chinese stimulus has led to a run-up in Chinese securities prices, but the full impact on incoming accounts is yet to be determined [56] Other Important Information - The company upgraded its API functionality to provide new introducing broker clients with faster integration [10] - Legal and regulatory charges included a $9 million reserve increase, reflecting ongoing evaluations of open cases [58][59] Q&A Session Summary Question: Utilization of U.S. election forecast contracts - The company reported around 800 clients trading the election contracts, with a volume of approximately $6 million, primarily from U.S. clients due to regulatory restrictions [30] Question: Competitive landscape with new index options - Management indicated uncertainty regarding the impact of a competitor's lower-priced index options, noting that index options have traditionally been traded by professionals [33] Question: Growth trajectory in the RIA channel - Management expressed hope for increased financial adviser accounts, with improvements to the RIA platform expected to attract more clients [39] Question: Characteristics of new accounts - New accounts generally bring more cash, with individuals and proprietary traders showing the fastest growth [41][44] Question: Marketing expenditure outlook - The company plans to increase marketing spend by approximately 20% annually, adjusting based on the performance of various channels [47] Question: Trading activity per account - Proprietary trading accounts have generated higher commissions than other segments, contributing to stabilization in trading activity [50] Question: Impact of lower interest rates on net interest income - Management acknowledged a predictable hit to net interest income but remains optimistic about account growth offsetting this impact [53] Question: Impact of Chinese stimulus - The recent Chinese stimulus led to a temporary increase in Chinese securities prices, but the long-term impact on accounts is still unclear [56] Question: Future of ForecastEx contracts - The company is working with regulators to expand the availability of ForecastEx contracts outside the U.S., focusing on economic and climate indicators [62] Question: Plans for the Dubai office - The Dubai office aims to attract sophisticated accounts and hedge funds, capitalizing on the influx of expats in the region [64] Question: Trading dynamics around elections and IPOs - Increased volatility and trading activity are expected around elections, with potential fee earnings from upcoming IPOs [68][71] Question: Considerations for selling stock - Management indicated that they may consider selling stock if large bidders emerge but are cautious about market conditions [73]

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 ...

Core Insights - Analysts project that Interactive Brokers Group, Inc. (IBKR) will report quarterly earnings of $1.78 per share, reflecting a year-over-year increase of 14.8% [1] - Revenue is expected to reach $1.32 billion, marking a 15.4% increase from the same quarter last year [1] - The consensus EPS estimate has been revised 1.4% higher in the last 30 days, indicating a positive reevaluation by analysts [1] Financial Metrics - 'Customer Statistics - Total Accounts' is estimated to reach 2,957.32 thousand, compared to 2.43 million a year ago [2] - 'Average interest-earning assets' are projected at $132.86 billion, up from $119.91 billion in the same quarter last year [2] - 'Customer Statistics - Cleared Customers - Commission per Cleared Commissionable Order' is estimated at $3.09, slightly down from $3.11 a year ago [2] Additional Financial Projections - 'Customer Statistics - Customer Equity' is expected to reach $524.66 billion, up from $369.8 billion in the same quarter last year [3] - 'Other fees and services' are projected at $62.10 million, compared to $52 million a year ago [3] - 'Interest income' is forecasted at $1.79 billion, an increase from $1.64 billion last year [3] - 'Commissions' are expected to be $418.18 million, up from $333 million a year ago [3] - 'Total net interest income' is estimated at $804.24 million, compared to $733 million last year [3] - 'Other income' is projected at -$4.93 million, down from $27 million in the same quarter last year [4] Stock Performance - Over the past month, shares of Interactive Brokers have increased by 21.8%, outperforming the Zacks S&P 500 composite, which rose by 5.9% [4] - Currently, IBKR holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [4]

In the latest market close, Interactive Brokers Group, Inc. (IBKR) reached $147.59, with a -0.66% movement compared to the previous day. The stock's change was less than the S&P 500's daily gain of 0.97%. Elsewhere, the Dow gained 0.3%, while the tech-heavy Nasdaq added 1.45%.The the stock of company has risen by 19.6% in the past month, leading the Finance sector's loss of 4.16% and the S&P 500's gain of 5.41%.The investment community will be closely monitoring the performance of Interactive Brokers Group, ...

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Interactive Brokers Group, Inc. (IBKR) . This company, which is in the Zacks Financial - Investment Bank industry, shows potential for another earnings beat.This company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the p ...