Interactive Brokers Group
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Interactive Brokers Group beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly, and earnings per share increased.
Margins grew across the board.
Interactive Brokers Group logged revenue of $307.9 million. The analysts polled by S&P Capital IQ expected to see revenue of $295.4 million. Sales were 65% higher than the prior-year quarter's $203.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.27. The three earnings estimates compiled by S&P Capital IQ anticipated $0.22 per share on the same basis. GAAP EPS were $0.30 for Q4 versus -$0.66 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 78.3%, 1,350 basis points better than the prior-year quarter. Operating margin was 50.7%, 2,820 basis points better than the prior-year quarter. Net margin was 4.5%, 1,960 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $344.7 million. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $1.43 billion. The average EPS estimate is $1.35.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 569 members out of 591 rating the stock outperform, and 22 members rating it underperform. Among 211 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 205 give Interactive Brokers Group a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Interactive Brokers Group is outperform, with an average price target of $17.75.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Interactive Brokers Group. Motley Fool newsletter services have recommended buying shares of Interactive Brokers Group. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.