IBG, Inc.-Interactive Brokers Q4 Earnings Rise Y/Y on Higher Revenues, Stock Up

Core Insights - Interactive Brokers Group (IBKR) reported better-than-expected quarterly results, with adjusted earnings per share of $2.03, surpassing the Zacks Consensus Estimate of$ 1.86, marking a 33.6% increase from the prior-year quarter [1][3] - The company's total GAAP net revenues for the quarter reached $1.39 billion, up 21.8% year over year, while adjusted net revenues were$ 1.42 billion, reflecting a 23.9% increase [5][6] Financial Performance - For the fourth quarter of 2024, net income available to common shareholders (GAAP) was $217 million or$ 1.99 per share, compared to $160 million or$ 1.48 in the prior-year quarter [3] - For the full year 2024, adjusted earnings per share was $7.03, exceeding the Zacks Consensus Estimate of$ 6.99, and indicating a 22.3% rise from the previous year [4] Revenue and Expenses - Total GAAP net revenues for 2024 were $5.19 billion, up 19.5% year over year, while adjusted net revenues were$ 5.26 billion, reflecting a 20.4% increase [5] - Non-interest expenses increased by 7.4% year over year to $347 million, primarily due to execution, clearing, and distribution fees, as well as employee compensation and benefits [6] Customer Metrics - Total customer daily average revenue trades (DARTs) increased by 61.2% year over year to 3.12 million, significantly surpassing estimates [7] - Customer accounts grew by 30.2% from the year-ago quarter to 3,337,000, also exceeding predictions [7] Capital Position - As of December 31, 2024, cash and cash equivalents totaled$ 68.1 billion, with total assets at $150.5 billion and total equity rising to$ 16.6 billion [8] Strategic Outlook - The company is expected to benefit from proprietary software development and an increase in emerging market customers, with higher interest rates likely aiding revenue growth in the near term [10]