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 -1.97% change in stock price 10 days leading up to the earnings, and a +0.85% change 10 days following the report. On the earnings day itself, the stock moves by +0.38%. This data can give you a slight idea of what to expect for the next quarter's release.
IBKR Key Earning Data
IBKR Earnings Analysis
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.
IBKR FAQs
How does IBKR typically perform around its earnings report dates?
IBKR's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a -1.97% change leading up to the report and a +0.85% change in the 10 days following the release.
