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What's in the Cards for Interactive Brokers in Q3 Earnings?
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Interactive Brokers Group, Inc. (IBKR - Free Report) is set to report tthird-quarter 2024 results on Oct. 15, after market close. Its earnings and revenues are expected to have improved year over year.
Stay up-to-date with all quarterly releases: See ZacksEarnings Calendar.
In the last reported quarter, Interactive Brokers surpassed the Zacks Consensus Estimate. Results benefited from higher total GAAP net revenues, growth in customer accounts and an increase in daily average revenue trades (DARTs).
IBKR has a decent earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed in one.
Interactive Brokers Group, Inc. Price and EPS Surprise
The Zacks Consensus Estimate for IBKR’s earnings has moved 1.7% north to $1.78 per share over the past seven days. The estimate indicates a 14.8% rise from the year-ago quarter’s reported number.
The consensus estimate for sales is pegged at $1.32 billion, suggesting an increase of 15.4%.
Interactive Brokers’ Other Key Q3 Estimates
Client activity was solid during the third quarter, with the major indexes touching all-time highs several times. This, along with robust DART numbers in each of the three months of the third quarter, is expected to have supported Interactive Brokers’ commission revenues. The Zacks Consensus Estimate for commission revenues is pegged at $418.2 million, indicating a 25.6% jump from the prior-year quarter. Our estimate for the metric is $434.3 million.
Additionally, relatively high interest rates are expected to have supported IBKR’s net interest income (NII) in the to-be-reported quarter. Though the Federal Reserve lowered the interest rates by 50 basis points at its September FOMC meeting, this is less likely to have any adverse impact on the company’s NII. Thus, the consensus estimate for NII is $804.2 million, implying a 9.7% increase. We project NII to be $840.9 million.
The Zacks Consensus Estimate for other loss is pegged at $4.9 million against other income of $27 million in the prior-year quarter. Our estimate for other loss is $19.5 million.
On the cost front, total operating expenses are likely to have remained elevated as IBKR invests in key areas to enhance platform capabilities, drive product innovation, improve customer support and build upon regulatory and compliance functions. We anticipate total non-interest expenses of $388 million, indicating a jump of 27.2% year over year.
What Our Model Unveils for IBKR
Our quantitative model does not conclusively predict an earnings beat for Interactive Brokers this time. This is because it doesn’t have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Interactive Brokers has an Earnings ESP of 0.00%.
Zacks Rank: The company currently sports a Zacks Rank #3.
Finance Sector Stocks Worth a Look
Here are a couple of finance sector stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time:
The Earnings ESP for First Horizon (FHN - Free Report) is +3.18% and it carries a Zacks Rank #3 at present. The company is slated to report third-quarter 2024 results on Oct. 16.
Over the past seven days, the Zacks Consensus Estimate for FHN’s quarterly earnings has remained unchanged at 38 cents.
Image: Bigstock
What's in the Cards for Interactive Brokers in Q3 Earnings?
Interactive Brokers Group, Inc. (IBKR - Free Report) is set to report tthird-quarter 2024 results on Oct. 15, after market close. Its earnings and revenues are expected to have improved year over year.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
In the last reported quarter, Interactive Brokers surpassed the Zacks Consensus Estimate. Results benefited from higher total GAAP net revenues, growth in customer accounts and an increase in daily average revenue trades (DARTs).
IBKR has a decent earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed in one.
Interactive Brokers Group, Inc. Price and EPS Surprise
Interactive Brokers Group, Inc. price-eps-surprise | Interactive Brokers Group, Inc. Quote
IBKR’s Earnings & Sales Projections for Q3
The Zacks Consensus Estimate for IBKR’s earnings has moved 1.7% north to $1.78 per share over the past seven days. The estimate indicates a 14.8% rise from the year-ago quarter’s reported number.
The consensus estimate for sales is pegged at $1.32 billion, suggesting an increase of 15.4%.
Interactive Brokers’ Other Key Q3 Estimates
Client activity was solid during the third quarter, with the major indexes touching all-time highs several times. This, along with robust DART numbers in each of the three months of the third quarter, is expected to have supported Interactive Brokers’ commission revenues. The Zacks Consensus Estimate for commission revenues is pegged at $418.2 million, indicating a 25.6% jump from the prior-year quarter. Our estimate for the metric is $434.3 million.
Additionally, relatively high interest rates are expected to have supported IBKR’s net interest income (NII) in the to-be-reported quarter. Though the Federal Reserve lowered the interest rates by 50 basis points at its September FOMC meeting, this is less likely to have any adverse impact on the company’s NII. Thus, the consensus estimate for NII is $804.2 million, implying a 9.7% increase. We project NII to be $840.9 million.
The Zacks Consensus Estimate for other loss is pegged at $4.9 million against other income of $27 million in the prior-year quarter. Our estimate for other loss is $19.5 million.
On the cost front, total operating expenses are likely to have remained elevated as IBKR invests in key areas to enhance platform capabilities, drive product innovation, improve customer support and build upon regulatory and compliance functions. We anticipate total non-interest expenses of $388 million, indicating a jump of 27.2% year over year.
What Our Model Unveils for IBKR
Our quantitative model does not conclusively predict an earnings beat for Interactive Brokers this time. This is because it doesn’t have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Interactive Brokers has an Earnings ESP of 0.00%.
Zacks Rank: The company currently sports a Zacks Rank #3.
Finance Sector Stocks Worth a Look
Here are a couple of finance sector stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time:
The Earnings ESP for First Horizon (FHN - Free Report) is +3.18% and it carries a Zacks Rank #3 at present. The company is slated to report third-quarter 2024 results on Oct. 16.
Over the past seven days, the Zacks Consensus Estimate for FHN’s quarterly earnings has remained unchanged at 38 cents.
F.N.B. Corp. (FNB - Free Report) is scheduled to release third-quarter 2024 earnings on Oct. 17. The company, which carries a Zacks Rank #3 at present, has an Earnings ESP of +0.93%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
FNB’s quarterly earnings estimates have remained unchanged at 36 cents over the past week.