Electronic brokerage firm Interactive Brokers (NASDAQ: IBKR) will be announcing earnings results this Tuesday after market close. Here’s what to expect.
Interactive Brokers beat analysts’ revenue expectations last quarter, reporting revenues of $1.67 billion, up 17.3% year on year. It was a very strong quarter for the company, with and a beat of analysts’ EPS estimates.
Is Interactive Brokers a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Interactive Brokers’s revenue to grow 19.1% year on year, improving from the 14.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Interactive Brokers has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Interactive Brokers’s peers in the investment banking & brokerage segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Morgan Stanley delivered year-on-year revenue growth of 16%, beating analysts’ expectations by 4%, and Goldman Sachs reported revenues up 14.4%, topping estimates by 1%. Morgan Stanley traded up 2.1% following the results while Goldman Sachs’s stock price was unchanged.
Read our full analysis of Morgan Stanley’s results here and Goldman Sachs’s results here.
There has been positive sentiment among investors in the investment banking & brokerage segment, with share prices up 11.5% on average over the last month. Interactive Brokers is up 20.9% during the same time and is heading into earnings with an average analyst price target of $78.30 (compared to the current share price of $81.99).
ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.
Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.
