Interactive Brokers stock falls 4% as Q3 earnings miss estimates

NEW YORK - Interactive Brokers (NASDAQ:IBKR ) Group, Inc. (NASDAQ:IBKR) reported third-quarter earnings that missed analyst expectations, sending shares down nearly 4% in after-hours trading on Tuesday.

The automated global electronic broker posted adjusted earnings per share of $1.75 for the quarter ended September 30, falling short of the $1.81 consensus estimate. However, revenue came in at $1.365 billion, surpassing expectations of $1.34 billion.

Commission revenue jumped 31% year-over-year to $435 million, driven by higher customer trading volumes. Options, stock and futures trading volumes increased 35%, 22% and 13% respectively compared to the same period last year.

Net interest income rose 9% to $802 million, benefiting from higher customer margin loans and credit balances.

"We saw strong growth across our key metrics this quarter, with total customer accounts up 28% YoY to 3.12 million and customer equity increasing 46% to $541.5 billion," said Milan Galik, CEO of Interactive Brokers.

Despite the revenue beat, the earnings miss appeared to disappoint investors. Interactive Brokers stock was down 3.99% in after-hours trading following the release.

The company declared a quarterly cash dividend of $0.25 per share, payable on December 13 to shareholders of record as of November 29.

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Source: Investing.com