High Client Activity to Support Interactive Brokers in Q4 Earnings

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].