How did IBKR's Q4 2024 earnings surprise impact its stock?

IBKR's Q4 2024 earnings surprise had a positive impact on its stock. The company's adjusted earnings per share (EPS) of $2.03 exceeded the Zacks Consensus Estimate of $1.86, resulting in a 3.5% rise in the stock price in after-market hours on the news. This indicates that investors reacted positively to the earnings beat, likely due to improved revenue and customer account growth. 1. **Revenue Growth**: IBKR's total GAAP net revenues for the quarter were $1.39 billion, up 21.8% year-over-year. The company's commission revenue increased by 37% to $477 million, driven by higher customer trading volumes in options and stocks. Net interest income rose by 11% to $807 million, attributed to higher average customer margin loans and credit balances. 2. **New Accounts and Client Equity**: The company added 217,000 new accounts in Q4, contributing to a total of 775,000 new accounts in 2024. Client equity increased by 33% to $568 billion, marking the first time the company finished the year with over $0.5 trillion. 3. **Stock Price Movement**: Following the earnings release, IBKR's stock rose 2.99% in after-hours trading, reflecting investor confidence in the company's robust performance. This suggests that the market was pleased with the company's financial results and growth prospects. In conclusion, IBKR's Q4 2024 earnings surprise, which included a significant beat on EPS and revenue estimates, contributed to a positive movement in the company's stock. The company's strong financial performance and growth prospects, as evidenced by the increase in new accounts and client equity, likely bolstered investor confidence and drove the stock higher.