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Time to Buy Interactive Brokers (IBKR) Stock as Q2 Earnings Approach
ZACKSยท 2025-07-16 00:46
Core Viewpoint - Interactive Brokers (IBKR) is experiencing significant growth and is expected to perform well ahead of its Q2 results, with stock prices soaring nearly 100% over the past year and up 35% year to date [1][2]. Company Performance - IBKR's Q2 sales are projected to increase by 8% to $1.34 billion compared to $1.23 billion a year ago, with EPS expected to rise slightly from $0.44 to $0.45 [3][4]. - The Zacks ESP indicates that IBKR could exceed earnings expectations, with the most accurate estimate for Q2 EPS at $0.46 [4]. Earnings Estimates - Recent revisions show that fiscal 2025 and FY26 EPS estimates for IBKR have increased by 4% and 3% respectively, indicating positive momentum [5][6]. - Annual earnings are expected to rise by 4% this year and another 7% in FY26 to $1.97 per share, alongside steady sales growth projected at 3% in FY25 and 6% in FY26, reaching $5.73 billion [6]. Valuation Comparison - IBKR trades at a forward earnings multiple of 32.4X, significantly lower than Robinhood's 79.6X, and closer to the Zacks Financial-Investment Bank Industry average of 15.8X and Charles Schwab's 21.9X [7]. Investment Appeal - Investors seeking exposure to FinTech growth may find IBKR a more affordable option compared to Robinhood, with a strong buy rating and high momentum score [8].