Interactive Brokers Q4 Earnings: Analyzing Key Metrics Compared to Estimates

Interactive Brokers Group, Inc. (IBKR) has reported notable financial results for the fourth quarter of 2024. The company's revenue reached $1.42 billion, which reflects a significant increase of 25% compared to the same quarter last year. Additionally, the earnings per share (EPS) were $2.03, an increase from $1.52 a year prior.

When we look at these numbers in relation to Wall Street expectations, we can see that the revenue surpassed the Zacks Consensus Estimate of $1.38 billion by 3.50%. In terms of EPS, the company achieved a surprise of 9.14%, as the consensus estimate was set at $1.86.

For investors, it is crucial not only to observe revenue and earnings growth year-over-year but also to analyze how these results stack up against Wall Street's expectations. Certain key metrics can provide a clearer view of a company's financial well-being.

These metrics have a substantial impact on both the top and bottom lines, and comparing them with previous year figures as well as analyst estimates can help investors get a better sense of a stock's potential performance.

Key Metrics Overview

Let's dive into the performance of Interactive Brokers, as observed in the recently reported quarter, using key metrics that are often monitored by Wall Street analysts:

• Net Interest Margin: 2.2%, which is slightly lower than the average estimate of 2.4% provided by two analysts.
• Total Accounts: 3.34 million accounts, exceeding the estimated average of 3.2 million from two analysts.
• Average Interest-Earning Assets: $148.36 billion, surpassing the estimated average of $138.37 billion.
• Total Customer DARTs: 3.12 million, higher than the average estimate of 2.8 million from two analysts.
• Commission per Cleared Commissionable Order: $2.72, slightly below the estimated average of $2.81 from two analysts.
• Customer Equity: $568.2 billion, which is greater than the average estimate of $546.27 billion.
• Other Fees and Services: $81 million, surpassing the estimated average of $63.07 million from three analysts.
• Commissions: $477 million, exceeding the average estimate of $456.68 million from three analysts.
• Total Net Interest Income: $807 million, which is below the average estimate of $822.41 million from three analysts.
• Interest Income: $1.86 billion, exceeding the estimated average of $1.77 billion from three analysts.

Stock Performance Indication

In terms of market performance, shares of Interactive Brokers have shown a return of +7% over the past month. This is in contrast to the Zacks S&P 500 composite, which has experienced a modest change of +1.2%. Currently, Interactive Brokers holds a Zacks Rank of #2 (Buy), suggesting a favorable outlook for potential outperformance in the near term.

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