Interactive Brokers Group (NASDAQ:IBKR) announced fourth-quarter solid results for 2022. The results, which beat the analysts’ estimates, were driven by an expanding customer base and higher interest rates.
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The company’s stock increased by 2.5% after the announcement. In the last six months, the stock has gained 40%.
Interactive Brokers Group provides online trading services for stocks, options, futures, currencies, crypto, gold, and more in more than 150 markets.
The adjusted earnings per share (EPS) was $1.30, compared to the consensus estimate of $1.17. This was also higher than $0.83 in the year-ago quarter. Adjusted net revenue also increased from $683 million to $958 million on a year-over-year basis. The revenues beat the Street’s estimate by $26 million.
The highlight of the results was the net interest income, which increased by 92% to $565 million, due to improved benchmark rates. Commission revenue increased by 3% to $331 million due to higher futures and option trading volumes.
Consumer equity decreased by 18% to $306.7 billion because of the market’s volatility. However, this was offset by the volume of customer accounts, which grew by 25% to 2.09 million.
The company also announced a quarterly dividend of $0.10 per share.
Is IBKR a Good Stock to Buy?
According to TipRanks, the overall consensus on Interactive Brokers’ stock is a Strong Buy, based on four Buys and one Hold recommendation.
The IBKR target price is $92, which is 16% higher than the current price level.