Interactive Brokers Q3 adjusted EPS misses expectations; dividend raised
Overview
Automated global broker's Q3 revenue rose and beat analyst expectations
Adjusted EPS for Q3 missed analyst expectations
Company raised quarterly dividend to $0.15 per share
Outlook
Company did not provide specific financial guidance for upcoming quarters or full year
Result Drivers
NET INTEREST INCOME - Co said net interest income rose 19% due to higher average customer margin loans and customer credit balances
TRADING ACTIVITY - Co said commission revenue grew 12% on increased futures trading volume and higher daily average revenue trades, while stock and options volumes declined
OTHER FEES - Co said other fees and services rose 33%, mainly from higher risk exposure fees, payments for order flow, and market data fees
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $1.91 bln | $1.89 bln (7 Analysts) |
Q3 Adjusted EPS | Miss | $0.67 | $0.68 (12 Analysts) |
Q3 EPS | $0.69 | ||
Q3 Net Income | $1.35 bln | ||
Q3 Net Interest Income | $1.15 bln | ||
Q3 Dividend | $0.15 |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the investment banking & brokerage services peer group is "buy"
Wall Street's median 12-month price target for Interactive Brokers Group Inc is $106.80, about 26.9% above its October 14 closing price of $84.14
The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 32 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)