Interactive Brokers Group Earnings Preview

On Tuesday, April 20, Interactive Brokers Group IBKR will release its latest earnings report. Benzinga's report can help you figure out the ins and outs of the earnings release.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Interactive Brokers Group EPS will likely be near $0.91 while revenue will be around $736.60 million, according to analysts. Interactive Brokers Group earnings in the same period a year ago was $0.69 per share. Quarterly sales came in at $532.00 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 31.88% increase in the company's earnings. Revenue would be up 38.46% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:

Stock Performance

Shares of Interactive Brokers Group were trading at $76.55 as of April 16. Over the last 52-week period, shares are up 78.56%. Given that these returns are generally positive, long-term shareholders are probably content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Interactive Brokers Group is scheduled to hold the call at 16:30:00 ET and can be accessed here.