2023-04-18 16:57:12 ET
Interactive Brokers Group ( NASDAQ: IBKR ) stock retreated 3.8% in extended trading on Tuesday after the automated electronic broker delivered first-quarter earnings below Wall Street expectations, despite a solid rise in net interest income and commission revenue.
Q1 adjusted EPS of $1.35, missing the average analyst estimate of $1.41, rose from $1.30 in Q4 and from $0.82 in the year-ago quarter. Adjusted net revenue of $1.06B, matching the consensus, advanced from $958M in the prior quarter and from $645M a year before.
Total daily average revenue trades (DARTs) stood at 1.85M in Q1, down from 1.89M in Q4 and from 2.44M in Q1 of last year.
Commission revenue drifted up 2% to $357M on record contract volumes in futures and larger average trade sizes in options and futures, tempered by lower customer stock trading volume.
Net interest income came in at $637M, compared with $565M in Q4 and $282M in Q1 2022, reflecting higher benchmark interest rates and customer credit balances.
Other income accelerated $58M to a gain of $19M, $39M of which was tied to its U.S. government securities portfolio, and $19M related to its currency diversification strategy.
Noninterest expense totaled $295M vs. $287M in Q4 and $251M in Q1 2022.
Customer accounts gained 21% Y/Y to 2.20M, and customer margin loans fell 18% to $39.4B.
Earlier, Interactive Brokers Group Non-GAAP EPS of $1.35 misses by $0.06, revenue of $1.06B in-line.
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Interactive Brokers stock slides after Q1 profit falls short of estimates