IBKR Earnings Prediction
The chart below shows how IBKR performed 10 days before and after its earnings report, based on data from the past quarters. Typically, IBKR sees a -2.30% change in stock price 10 days leading up to the earnings, and a +1.14% change 10 days following the report. On the earnings day itself, the stock moves by +0.70%. This data can give you a slight idea of what to expect for the next quarter's release.
IBKR Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.33B
16.17%
-0.30%
Gross Margin
--
--
--
Operating Margin
43.47%
5.46%
7.17%
Net Margin
41.62%
12.85%
16.52%
EPS
1.98
33.78%
17.86%
No Data Available
IBKR Earnings Analysis
Interactive Brokers Group Inc Corporation (IBKR.O) Earnings Conference Call
Positive
Record Account Additions: 775,000 accounts added in 2024, a record number of annual adds, with 217,000 accounts added in Q4 alone.
Client Equity Milestone: Client equity increased by 33% to $568 billion, marking the first time the company finished the year with over $500 billion in client equity.
Record Pretax Income: Quarterly pretax income reached a record of over $1 billion for the first time, with a GAAP pretax margin of 75% for the quarter.
Record Net Interest Income: Net interest income hit a quarterly record of $807 million and a yearly record of $3.1 billion, despite multiple rate cuts in major currencies.
Record Commission Revenue Growth: Commission revenues rose to a record $477 million for the quarter and $1.7 billion for the full year, up 25% from last year.
Negative
Increased Execution Costs: Execution, clearing, and distribution costs increased to $115,000,000 for the quarter, up from the previous year, reflecting higher trade volumes, which could pressure margins going forward.
Rising Administrative Expenses: General and administrative expenses rose 49% year-over-year to $314,000,000, primarily due to a one-time litigation expense, indicating potential volatility in expense management.
Interest Income Challenges: Despite a record net interest income of $807,000,000 for the quarter, the overall segregated cash interest income declined by 2%, highlighting challenges in maintaining interest income amidst rate cuts.
Commission Per Order Decline: The average commission per cleared commissionable order decreased to $2.72, down from the previous year, suggesting a shift towards smaller average order sizes and potentially lower revenue per trade.
Interest Rate Vulnerability: The company estimates that a 25 basis point decrease in the benchmark Fed funds rate could reduce annual net interest income by $64,000,000, indicating vulnerability to interest rate fluctuations.
