Brokerage firm Interactive's Q4 revenue beats estimates

Overview

• Automated broker's Q4 revenue rose, beating analyst expectations

• Adjusted EPS for Q4 beat analyst expectations

• Customer accounts increased 32% to 4.40 mln

Outlook

• Company did not provide specific guidance for future quarters or year

Result Drivers

• HIGHER TRADING VOLUMES - Commission revenue increased 22% to $582 mln due to higher customer trading volumes in options, futures, and stocks

• INCREASED NET INTEREST INCOME - Net interest income rose 20% to $966 mln driven by higher average customer margin loans and credit balances, and stronger securities lending

• LOWER REGULATORY FEES - Execution, clearing, and distribution fees decreased 21% to $91 mln due to lower regulatory fees and greater capture of liquidity rebates

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", no "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 $82.00, about 11.8% above its January 16 closing price of $73.36

• The stock recently traded at 31 times the next 12-month earnings vs. a P/E of 32 three months ago

Press Release: ID:nBw4n86Ma

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