Interactive Brokers Q2 revenue beats estimates on higher customer trading volumes

Overview

• Automated broker's Q2 revenue rose, beating analyst expectations

• Adjusted EPS for Q2 increased yr/yr and beat analyst expectations

• Commission revenue rose 30% on higher customer trading volumes

Outlook

• Company did not provide specific guidance for the current or future periods

Result Drivers

• HIGHER TRADING VOLUMES - Commission revenue rose 30% on increased customer trading in options, stocks, and futures

• NET INTEREST INCOME - Net interest income increased 23% on higher average customer margin loans and credit balances

• OTHER FEES AND SERVICES - Other fees and services increased 40%, led by higher payments for order flow, risk exposure fees, and market data fees

Company press release: ID:nBw6fDZFCa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 1 "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 $103.50, about 12.9% above its July 20 closing price of $91.68

• The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 26 three months ago

Reuters Recommended Reads

• July 21 - Charles Schwab posts record quarterly profit on trading boom

• July 21 - MSCI shares fall as company raises expense forecast

• July 21 - Switzerland's Julius Baer H1 net profit more than doubles, helped by high client activity

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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.)