Shares of Interactive Brokers (IBKR) gained in after-hours trading after the electronic investment broker reported earnings for its second quarter of Fiscal Year 2024. Earnings per share came in at $1.76, which beat analysts’ consensus estimate of $1.74 per share. However, sales increased by 23% year-over-year, with revenue hitting $1.23 billion. This missed analysts’ expectations of $1.266 billion.
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Daily average revenue trades (DARTs) increased to 2.386M, compared to the previous year’s 1.865M – a 28% gain. In addition, customer trading volume grew, with options contracts surging by 35% year-over-year, while futures contracts and stock share volumes jumped by 10% and 26%, respectively. This led to a 26% increase in commission revenue, which came in at $406M, and a 28% growth in customer accounts to 2.92M.
Furthermore, net interest income rose to $792M from $694M in the same quarter a year earlier, as customer margin loans increased 32% to $55.1B.
Today’s strong results could have been anticipated by taking a quick look at IBKR’s website traffic. Indeed, the number of visitors jumped by 75.81% during the most recent quarter when compared to the same quarter of last year.
Is IBKR a Good Stock to Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on IBKR stock based on six Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 48% rally in its share price over the past year, the average IBKR price target of $144.57 per share implies 16.94% upside potential. However, it’s worth noting that estimates will likely change following today’s earnings report.
