Interestingly, What's remarkable is Does Interactive Brokers stock cost too much. Online stockbroker Interactive Brokers Group (IBKR 7. 65%) soared to close up 7.
65% on Friday after beating on both the top and bottom lines Thursday evening. On the other hand, Heading into the quarter, analysts forecast Interactive Brokers would earn $0 (remarkable data).
45 per (adjusted for one-time items) on sales of just under $1 (this bears monitoring). In fact, the company earned $0.
51 per -- generally accepted accounting principles (GAAP) -- and its sales were just under $1. Image source: Getty Images.
Interactive Brokers Q2 earnings Not only did Interactive Brokers report GAAP earnings superior to the mere "adjusted" earnings number Wall Street was looking for, but its earnings actually grew 24% in comparison to last year's Q2.
Revenue growth for the quarter was only 20%, so fit margins on revenue imved as well.
Interestingly, new customer accounts grew only 32% during the quarter, however, so much of the company's increase in revenue (and fit) must have come from existing customers, with new customers just dipping their toes in the water initially, amid market uncertainty.
Indeed, DARTs (daily average revenue trades) for the company grew 49%, suggesting that long-term customers of the company traded even more frequently in the quarter.
Is Interactive Brokers stock a buy, amid market uncertainty. Management did not give guidance for the coming quarter or for the full year (an important development).
For what it's worth, though, analysts who the stock forecast Q3 earnings very similar to Q2 -- $0, in today's financial world. 46 per, unless IB surprises them again.
Revenue growth is supposed to be similarly modest, up only 3% year over year. Granted, longer term, analysts see the company growing earnings at a faster rate -- 12 (remarkable data).
5% annually over the next five years (remarkable data), in today's financial world. Still, that doesn't seem fast enough to justify the stock's premium valuation of nearly 33x trailing earnings.
On the other hand, At that high price, I just can't bring myself to recommend the stock, earnings beat or no earnings beat (which is quite significant), in this volatile climate.
However, Rich Smith has no position in any of the stocks mentioned, amid market uncertainty. The Motley Fool has positions in and recommends Interactive Brokers Group.
The Motley Fool recommends the ing options: long January 2027 $175 calls on Interactive Brokers Group and short January 2027 $185 calls on Interactive Brokers Group.
At the same time, The Motley Fool has a disclosure policy.