Interactive Brokers Q2 revenue rises 20%, beats estimates on higher trading volumes

Overview

• Interactive Brokers Q2 revenue rises 20% yr/yr, beating analysts' expectations

• Adjusted EPS beats consensus, driven by higher trading volumes

• Company announces quarterly cash dividend of $0.08 per share

Outlook

• Company highlights increase in customer accounts and equity for future growth

• Company sees continued benefit from higher trading volumes

Result Drivers

• TRADING VOLUMES - Commission revenue up 27% due to higher trading volumes in stocks, options, and futures

• INTEREST INCOME - Net interest income increased 9% from higher customer credit balances and securities lending

• CURRENCY STRATEGY - Currency diversification strategy boosted comprehensive earnings by $301 mln

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment banking & brokerage services peer group is "buy"

• Wall Street's median 12-month price target for Interactive Brokers Group Inc is $65.00, about 8.5% above its July 16 closing price of $59.45

• The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 5 three months ago

Press Release: ID:nBwbytyWya