Strong trading activity among retail investors helped to lift the second-quarter financial results of Interactive Brokers (IBKR) past Wall Street forecasts.
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The Greenwich, Connecticut-based company reported earnings per share (EPS) of $0.51, which topped the $0.47 that was the consensus expectation of analysts. Revenue in the April-through-June period totaled $1.50 billion, which beat the Wall Street forecast of $1.40 billion.
In the same period of 2024, Interactive Brokers reported earnings of $0.41 on revenue of $1.20 billion. Shares of IBKR rose 4% in after-hours trading on news of the Q2 results. The stock is up 35% so far this year compared with a 7% gain in the benchmark S&P 500 index.
Interactive Brokers net income: Source: Main Street Data
Challenging Environment
Management at Interactive Brokers said they navigated a challenging market environment during this year’s second quarter. Stocks plunged in April because of U.S. President Donald Trump’s trade war, but rebounded later in the quarter after he delayed implementation of most of his threatened tariffs.
During the spring, Interactive Brokers saw a surge in investor activity as customers opened more accounts, traded more often, and traded more on margin or debt. The number of customer accounts jumped 32% year-over-year to 3.87 million, while margin loans grew 18% to $65.1 billion.
Is IBKR Stock a Buy?
The stock of Interactive Brokers has a consensus Strong Buy rating among six Wall Street analysts. That rating is based on five Buy and one Hold recommendations issued in the last three months. The average IBKR price target of $52.96 implies 10.89% downside from current levels. These ratings are likely to change after the company’s financial results.
