It has been about a month since the last earnings report for Interactive Brokers Group, Inc. (IBKR - Free Report) . Shares have lost about 9.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Interactive Brokers Group, Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Interactive Brokers Q1 Earnings Beat on Higher Revenues
Interactive Brokers’ first-quarter 2021 adjusted earnings per share of 98 cents outpaced the Zacks Consensus Estimate of 90 cents. Also, the bottom line reflects growth of 42% on a year-over-year basis.
An increase in DARTs and higher revenues primarily supported the results. However, a rise in expenses and lower interest rates acted as headwinds.
After considering non-recurring items, net income available to common shareholders (GAAP basis) was $107 million or $1.16 per share, up from $46 million or 60 cents per share in the prior-year quarter.
Interactive Brokers reported comprehensive income available to common shareholders of $90 million or 98 cents per share in the reported quarter compared with $39 million or 51 cents recorded in the prior-year quarter.
Revenues Improve, Expenses Rise
Total adjusted net revenues were $796 million, up 37% year over year. The top line beat the Zacks Consensus Estimate of $731.4 million. GAAP revenues were $893 million, up 67.9%.
Total non-interest expenses increased 13.4% year over year to $254 million. The rise was due to an increase in almost all cost components except for execution, clearing and distribution fees, and customer bad debt.
Income before income taxes was $639 million, increasing significantly from $308 million recorded in the prior-year quarter.
Adjusted pre-tax profit margin was 68%, up from 61%.
In the reported quarter, total customer DARTs increased significantly year over year to 3.31 million. Further, total cleared DARTs jumped from 1.30 million to 2.96 million.
Additionally, customer accounts grew 74% from the year-ago quarter to 1,325,000.
Capital Position Strong
As of Mar 31, 2021, cash and cash equivalents (including cash and securities set aside for regulatory purposes) totaled $49 billion compared with $48 billion on Dec 31, 2020.
As of Mar 31, 2021, total assets were $103.9 billion compared with $95.7 billion on Dec 31, 2020. Total equity was $9.4 billion, up from $9 billion as of Dec 31, 2020.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
Currently, Interactive Brokers Group, Inc. has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Interactive Brokers Group, Inc. has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
It has been about a month since the last earnings report for Interactive Brokers Group, Inc. (IBKR - Free Report) . Shares have lost about 9.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Interactive Brokers Group, Inc. due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.
Interactive Brokers Q1 Earnings Beat on Higher Revenues
Interactive Brokers’ first-quarter 2021 adjusted earnings per share of 98 cents outpaced the Zacks Consensus Estimate of 90 cents. Also, the bottom line reflects growth of 42% on a year-over-year basis.
An increase in DARTs and higher revenues primarily supported the results. However, a rise in expenses and lower interest rates acted as headwinds.
After considering non-recurring items, net income available to common shareholders (GAAP basis) was $107 million or $1.16 per share, up from $46 million or 60 cents per share in the prior-year quarter.
Interactive Brokers reported comprehensive income available to common shareholders of $90 million or 98 cents per share in the reported quarter compared with $39 million or 51 cents recorded in the prior-year quarter.
Revenues Improve, Expenses Rise
Total adjusted net revenues were $796 million, up 37% year over year. The top line beat the Zacks Consensus Estimate of $731.4 million. GAAP revenues were $893 million, up 67.9%.
Total non-interest expenses increased 13.4% year over year to $254 million. The rise was due to an increase in almost all cost components except for execution, clearing and distribution fees, and customer bad debt.
Income before income taxes was $639 million, increasing significantly from $308 million recorded in the prior-year quarter.
Adjusted pre-tax profit margin was 68%, up from 61%.
In the reported quarter, total customer DARTs increased significantly year over year to 3.31 million. Further, total cleared DARTs jumped from 1.30 million to 2.96 million.
Additionally, customer accounts grew 74% from the year-ago quarter to 1,325,000.
Capital Position Strong
As of Mar 31, 2021, cash and cash equivalents (including cash and securities set aside for regulatory purposes) totaled $49 billion compared with $48 billion on Dec 31, 2020.
As of Mar 31, 2021, total assets were $103.9 billion compared with $95.7 billion on Dec 31, 2020. Total equity was $9.4 billion, up from $9 billion as of Dec 31, 2020.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates.
VGM Scores
Currently, Interactive Brokers Group, Inc. has a nice Growth Score of B, though it is lagging a lot on the Momentum Score front with a D. Charting a somewhat similar path, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Interactive Brokers Group, Inc. has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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