NDAQ - Interactive Brokers Q2 earnings miss as commission revenue stalls Y/Y

2023-07-18 16:18:01 ET

Interactive Brokers Group ( NASDAQ: IBKR ) shares slipped 1.8% in Tuesday after-hours trading after the electronic trading brokerage posted weaker than expected Q2 earnings and revenue lined up with the consensus estimate.

Q2 adjusted EPS of $1.32, missing the $1.40 consensus, declined from $1.35 in Q1 2023 and climbed from $0.84 in Q2 2022. Adjusted net revenue of $1.06B, matching the average analyst estimate, was stable with the prior quarter and increased from $717M in the year-ago period.

Total daily average revenue trades, or DARTs, stood at 1.87M in Q2, vs. 1.85M in Q1, but declined 14% Y/Y.

Commission revenue, at $322M, was unchanged from a year ago. Customer trading volume was mixed with options contracts volume up 9% Y/Y, while futures contracts dropped 3% and stock share volumes slid 28%.

Net interest income rose to $694M from $637M in the prior quarter and $348M a year earlier. Net interest margin of 2.34% rose from 2.24% in Q1 2023 and from 1.27% in Q2 2022.

Noninterest expense of $348M increased from $295M in Q1 and from $264M in Q2 2022.

Customer accounts climbed 19% Y/Y to 2.29M and customer margin loans declined 2% to $41.9B.

Conference call at 4:30 PM ET.

Interactive Brokers Group ( IBKR ) non-GAAP EPS of $1.32 misses by $0.08.

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• Interactive Brokers Group: This Is a Good Opportunity to Participate in Growth

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