Interactive Brokers Group (NASDAQ:IBKR) stock fell about 3% in after-hours trading yesterday following the release of its fourth-quarter results. While revenue and earnings missed analysts’ expectations, they improved on a year-over-year basis, driven by an expanding customer base and higher interest rates.
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IBKR provides online trading services for stocks, options, futures, currencies, crypto, and gold.
O4 Earnings Snapshot
The company’s adjusted Q4 earnings increased 16.9% year-over-year to $1.52 per share but missed the consensus estimate of $1.53. Meanwhile, Q4 adjusted net revenue increased to $1.14 billion from $958 million in the year-ago quarter but came in lower than the Street’s estimate of $1.17 billion.
Net interest income increased 29% to $348 million, due to improved benchmark rates, customer margin loans, and customer credit balances. Furthermore, Commission revenue rose 5% to $348 million. However, non-interest expenses also saw an uptick, increasing to $323 million from $287 million in the same period last year.
In terms of key metrics, total customer daily average revenue trades (DARTs) increased 2% year-over-year to 1.93 million. Also, customer trading volume remained mixed across product types, with options and futures contracts up by 21% and 4%, respectively, while stock share volumes dipped by 22% year-over-year.
Is IBKR a Good Stock to Buy?
Wall Street analysts have a Strong Buy consensus rating on IBKR stock based on eight unanimous Buys assigned in the past three months. The average price target of $107.13 per share implies 22.9% upside potential. Shares have gained 13.5% in the past year.
