Research Desk Line-up: Charles Schwab Post Earnings Coverage
LONDON, UK / ACCESSWIRE / October 20, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Interactive Brokers Group, Inc. (NASDAQ: IBKR), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=IBKR, following the Company's release of its financial results on October 17, 2017, for the third quarter of the fiscal year 2017 (Q3 FY17). The Greenwich, Connecticut-based Company reported year-over-year growths in both its net revenues and earnings per share (EPS), which also outperformed market expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Investment Brokerage - National industry. Pro-TD has currently selected The Charles Schwab Corporation (NYSE: SCHW) for due-diligence and potential coverage as the Company announced on October 16, 2017, its financial results for Q3 2017. Register for a free membership today, and be among the early birds that get access to our report on Charles Schwab when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on IBKR; also brushing on SCHW. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/?symbol=IBKR
http://protraderdaily.com/optin/?symbol=SCHW
Earnings Reviewed
In the quarter ended September 30, 2017, Interactive Brokers' total net revenues came in at $426 million compared to $345 million in the year-ago same quarter. The rise in quarterly revenues was primarily attributed to increases in commission fees and interest income, partially offset by a decline in trading gains. The total net revenue numbers outperformed market expectations of $375 million for the reported quarter.
The electronic broker and market maker reported net income available for common stockholders of $31 million, or $0.43 per diluted share, in Q3 FY17 compared to $20 million, or $0.30 per diluted share, in Q3 FY16. Meanwhile, Wall Street had expected the Company to report net income of $0.37 per diluted share in Q3 FY17. Additionally, the Company's comprehensive income stood at $32 million, or $0.44 per diluted share, for Q3 FY17; up from $20 million, or $0.30 per diluted share, in the prior year's comparable quarter.
Performance Metrics
During Q3 FY17, Interactive Brokers' net interest income rose 34% to $243 million y-o-y from $157 million in Q3 FY16. The Company reported total commission revenues of $163 million in Q3 FY17, rising 13% from $144 million in the prior year's corresponding quarter. Meanwhile, trading gains revenues declined 71% to $11 million in Q3 FY17 from $38 million in last year's comparable quarter.
Interactive Brokers' total interest expenses surged to $61 million during Q3 FY17 from $21 million in Q3 FY16. Meanwhile, the Company's total non-interest expenses fell to $158 million in Q3 FY17 from $162 million in Q3 FY16. Furthermore, income before income taxes stood at $268 million, or 63% of total net revenues, in Q3 FY17; up from $183 million, or 53% of total net revenues, in Q3 FY16.
Segment Results
During Q3 FY17, Interactive Brokers' Electronic Brokerage segment's revenues grew to $367 million from $288 million in the previous year's same quarter. Additionally, the income before income taxes increased to $225 million, or 61% of segment revenues, in Q3 FY17 from $162 million, or 56% of segment revenues, in the year-ago comparable quarter.
Interactive Brokers' Market Making segment's revenue fell to $30 million in Q3 FY17 from $43 million in Q3 FY16. However, the segment's income before income taxes rose to $11 million, or 37% of segment revenues, for Q3 FY17 from $7 million, or 16% of segment revenues, in Q3 FY16.
Customer Accounts
At the end of the quarter ended September 30, 2017, Interactive Brokers had 457 thousand customer accounts, up 24% from 370 thousand in the year-ago corresponding quarter. The Company's total customer equity stood at $115.7 billion as on September 30, 2017; up 40% from $82.7 billion as on September 30, 2016.
In Q3 FY17, Interactive Brokers' Cleared Daily Average Revenue Trades (DART) grew 15% to 646 thousand from 564 thousand reported in the year-ago same quarter. Additionally, the Company's total Customer DARTs also increased to 695 thousand in Q3 FY17 from 609 thousand in Q3 FY16.
Dividend
In its earnings press release, Interactive Brokers' Board of Directors declared a quarterly cash dividend of $0.10 per share. The dividend is payable on December 14, 2017, to shareholders of record as of December 01, 2017.
Stock Performance
On Thursday, October 19, 2017, the stock closed the trading session at $49.42, slightly falling 0.68% from its previous closing price of $49.76. A total volume of 1.46 million shares have exchanged hands, which was higher than the 3-month average volume of 519.34 thousand shares. Interactive Brokers Group's stock price skyrocketed 27.50% in the last three months, 45.22% in the past six months, and 43.62% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have soared 35.36%. The stock is trading at a PE ratio of 48.21 and has a dividend yield of 0.81%. At Thursday's closing price, the stock's net capitalization stands at $20.41 billion.
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