Interactive Brokers Earnings: Do Not Be Fooled By These Numbers

Interactive Brokers Group, Inc. (NASDAQ:IBKR) reported double-digit percentage drops in profit and revenue year-over-year, missing analyst expectations. The revenue miss is a negative sign to shareholders seeking high growth, while the profit miss is a concern near-term stock price momentum. Shares are down 3.19%.

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Interactive Brokers Group, Inc. Earnings Cheat Sheet

Results: Net income decreased -32.84% to $9.1 million (19 cents per diluted share) in the quarter versus a net gain of $13.55 million in the year-earlier quarter.

Revenue: Decreased 24.82% to $247.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Interactive Brokers Group, Inc. reported adjusted net income of 19 cents per share. By that measure, the company missed the mean analyst estimate of $0.21. It missed the average revenue estimate of $280.3 million.

Key Stats:

Revenue decreased 25.75% from $332.8 million in the previous quarter. Net income decreased 27.14% from $12.49 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.29 to a profit $0.26. For the current year, the average estimate has moved down from a profit of $0.99 to a profit of $0.92 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)