IBKR.US (IBKR.US) Q3 revenue increased 19% year over year, profit fell short of expectations

The Zhitong Finance App learned that after the US stock market on Tuesday, IBKR.US (IBKR.US) announced results for the third quarter. According to the data, the online brokerage firm's third-quarter revenue increased 19% year over year to US$1,365 million, better than market expectations of US$1,337 million; earnings per share were US$1.75, up 13% year over year, falling short of market expectations of US$1.82.

Commission revenue increased 31% in the third quarter due to increased customer trading volume. Net interest income increased 8%. The number of customer accounts surged 28%. The total volume of DARTs (daily earnings transactions) surged 42%.

However, general and administrative expenses jumped 67% in the third quarter. The company said, “The one-time costs associated with the merger of the European subsidiary were $12 million, and the costs relating to legal and regulatory matters increased by $9 million.”

According to FactSet data, analysts expect the annual earnings per share of Yingtou Securities to increase by 21%, lower than the 42% increase in 2023, and a 2% decline in 2025.

The brokerage firm is popular with large traders and benefits from the still rising US stock market. Yingtou Securities reported a sharp increase in monthly customer accounts and average daily earnings transactions in the third quarter. The company also said that new products (such as the 2024 US election prediction contract) allow investors to hedge against political fluctuations and establish positions on key political and economic outcomes. The company handles transactions such as stocks, options, futures, etc.

Prior to the release of the third quarter report, Yingtou Securities shares surged nearly 10% in the first half of October, bringing the 2024 increase to 84.4%.

As of press release, the stock price of Yingtou Securities fell 4.07% after the market to $146.75.