Interactive Brokers (IBKR.US) Q3 revenue rose 19% YoY, but earnings missed expectations

Intuitively Interactive (IBKR.US) reported its third-quarter earnings after the market closed on Tuesday. The online brokerage firm's revenue grew 19% year-on-year to $1.365 billion, topping the market's expectation of $1.337 billion; its EPS was $1.75, up 13% year-on-year, missing the market's expectation of $1.82.

Brokerage revenue increased 31% in the third quarter due to increased client trading volume. Net interest income grew 8%. The number of client accounts surged 28%. The total number of DARTs (daily average revenue trades) soared 42%.

However, general and administrative expenses jumped 67% in the third quarter. The company said, "One-time expenses related to the consolidation of European subsidiaries were $12 million, and expenses related to legal and regulatory matters increased by $9 million."

FactSet data showed that analysts expect Intuitively Interactive's full-year EPS to grow 21%, lower than the 42% in 2023, and is expected to decline 2% in 2025.

The brokerage firm, which is popular among institutional traders, has benefited from the still-rising U.S. stock market. Intuitively Interactive reported that its client accounts and DARTs increased significantly every month in the third quarter. The company also said that new products (such as 2024 U.S. election prediction contracts) allow investors to hedge political volatility and position on key political and economic outcomes. It handles stock, options, futures, and other trades.

Intuitively Interactive's stock soared nearly 10% in the first half of October before the third-quarter report, bringing its 2024 gain to 84.4%.

As of the time of writing, Intuitively Interactive's stock price fell 4.07% after hours to $146.75.