Interactive Brokers Group (Nasdaq: IBKR) ended the first quarter of 2023 with adjusted earnings of $1.35 per share, which beat consensus market estimates by about $0.06. However, the number jumped from $1.30 per share in the previous quarter and $0.82 in the previous year’s first quarter.
The most recent reported diluted earnings per share came in at $1.42, compared to $0.74 a year earlier and $1.31 per share in the fourth quarter of 2022.
The 3.57 percent shortfall in Interactive Brokers earnings from market expectations shook investor confidence. The company’s shares ended Tuesday’s trading hours up 1.13 percent but fell 4 percent in after-market trading as the gains came in.
Interactive Brokers share price on Tuesday
Looking at the after-hours decline, Interactive Brokers shares have added more than 15 percent this year compared to an 8.1 percent gain in the S&P 500.
Record revenue for interactive brokers
The US-based brokerage reported net revenue of over $1.05 billion for the quarter, with the adjusted number at $1.01 billion. These two numbers increased significantly compared to the company’s previous quarterly performance. Revenue was in line with market expectations.
In the fourth quarter of 2022, the reported revenue was $976 million and the adjusted figure was $958 million, while in the first quarter of that year, those figures were $645 million and $692 million, respectively.
The brokerage firm reported $761 million in pre-tax income, while the adjusted figure was $720 million. Profit margin before tax improved to 72% on reported numbers and 71% on adjusted numbers.
While commission-based income for Interactive Brokers increased just 2 percent to $357 million, net interest income jumped 126 percent to $637 million on “high benchmark interest rates and customer credit balances.” In addition to this, she has earned $19 million from “Other Income”.
Improve customer metrics
At the end of last quarter, Interactive Brokers had 2.20 million customer accounts, up 5.2 percent and 21 percent on a quarterly and annual basis, respectively. However, total DARTs were down 19 percent year over year to 2.05 million. Cleared DARTs also fell 17 percent to 1.85 million.
While customer credits increased 4 percent to $96.6 billion, customer margin loans decreased 18 percent to $39.4 billion.
Meanwhile, the brokerage continued to improve its services and recently added deposits and withdrawals through financial technology platform Wise. However, in March, the Australian entity faced a setback as the country’s regulator temporarily suspended its equity lending products.
Interactive Brokers Group (Nasdaq: IBKR) ended the first quarter of 2023 with adjusted earnings of $1.35 per share, which beat consensus market estimates by about $0.06. However, the number jumped from $1.30 per share in the previous quarter and $0.82 in the previous year’s first quarter.
The most recent reported diluted earnings per share came in at $1.42, compared to $0.74 a year earlier and $1.31 per share in the fourth quarter of 2022.
The 3.57 percent shortfall in Interactive Brokers earnings from market expectations shook investor confidence. The company’s shares ended Tuesday’s trading hours up 1.13 percent but fell 4 percent in after-market trading as the gains came in.
Interactive Brokers share price on Tuesday
Looking at the after-hours decline, Interactive Brokers shares have added more than 15 percent this year compared to an 8.1 percent gain in the S&P 500.
Record revenue for interactive brokers
The US-based brokerage reported net revenue of over $1.05 billion for the quarter, with the adjusted number at $1.01 billion. These two numbers increased significantly compared to the company’s previous quarterly performance. Revenue was in line with market expectations.
In the fourth quarter of 2022, the reported revenue was $976 million and the adjusted figure was $958 million, while in the first quarter of that year, those numbers were $645 million and $692 million, respectively.
The brokerage firm reported $761 million in pre-tax income, while the adjusted figure was $720 million. Profit margin before tax improved to 72% on reported numbers and 71% on adjusted numbers.
While commission-based income for Interactive Brokers increased just 2 percent to $357 million, net interest income jumped 126 percent to $637 million on “high benchmark interest rates and customer credit balances.” In addition to this, she has earned $19 million from “Other Income”.
Improve customer metrics
At the end of last quarter, Interactive Brokers had 2.20 million customer accounts, up 5.2 percent and 21 percent on a quarterly and annual basis, respectively. However, total DARTs were down 19 percent year over year to 2.05 million. Cleared DARTs also fell 17 percent to 1.85 million.
While customer credits increased 4 percent to $96.6 billion, customer margin loans decreased 18 percent to $39.4 billion.
Meanwhile, the brokerage continued to improve its services and recently added deposits and withdrawals through financial technology platform Wise. However, in March, the Australian entity faced a setback as the country’s regulator temporarily suspended its equity lending products.