Interactive Brokers Delivers 'Well-Rounded' Earnings Beat, Analysts See Global Retail Trading Growth Ahead

Interactive Brokers Group, Inc. IBKR reported better-than-expected fourth quarter- results.

The company reported its quarterly results amid an exciting earnings season. Here are some key analyst takeaways.

Goldman Sachs On Interactive Brokers

Analyst James Yaro maintained a Buy rating, while raising the price target from $214 to $226.

Interactive Brokers reported its fourth-quarter adjusted earnings at $2.02 per share, beating consensus of $1.86 per share, Yaro said in a note. The results were "well-rounded," as the earnings beat was driven by 4% better net revenues and a beat of 230 basis points on margin, he added.

"Looking ahead, the company expects to conduct a number of new programming projects, and plans to increase the marketing budget, both of which should support strong account growth, around which management sounded a constructive tone," the analyst wrote.

Given the company's guidance of lower compensation expenses as well as lower execution and clearing expenses, he raised the pre-tax margin estimate for 2025 and 2026 by 1.3 percentage points to 72.8% and by 1.2 percentage points to 72.4%.

Check out other analyst stock ratings.

Piper Sandler Sachs On Interactive Brokers

Analyst Patrick Moley reiterated an Overweight rating, while lifting the price target from $200 to $210.

Interactive Brokers recorded an earnings beat "primarily driven by other income, Moley said. While commission and execution fees came in-line, the company's fixed expenses were around 3% "below our forecast," he added.

Annualized accounts grew by 28% in the fourth quarter and by 30% for the full year, the analyst stated. Interactive Brokers is "the best positioned U.S. brokerage platform to benefit from global growth in retail trading," he further wrote.

Keefe, Bruyette & Woods On Interactive Brokers

Analyst Kyle Voigt reiterated a Market Perform rating and price target of $195.

According to Voigt, Interactive Brokers reported adjusted net revenues of $1.42 billion, exceeding the consensus estimate of $1.37 billion, primarily due to higher Other Income. However, the company’s net interest income totaled $807 million, coming in slightly below the consensus estimate of $811 million.

The company's expenses totaled $347 million, coming in below the consensus estimate of $367 million, the analyst stated. "Total fixed expenses grew by +6% YoY on a reported basis in 4Q24," he further wrote.

IBKR Price Action: Shares of Interactive Brokershad were up 6.5% to $205.54 at the time of publication on Wednesday.

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