Interactive Brokers (IBKR) reported second quarter earnings earlier this week of 21 cents per share. That was in line with analysts estimates. Interactive Brokers bottom line results of 21 cents per share in the quarter is four cents higher than their profit from the same quarter a year ago. The company reported net revenue of $283.9 million, which was up 8.9% from a year ago. That revenue figure did come up short of analysts expectations of $295 million.
It’s a tale of two different segments for Interactive Brokers right now. The electronic brokerage segment of Interactive Brokers is growing at a nice clip. Net revenue at the electronic brokerage segment alone jumped 24 percent from a year ago. Daily Average Revenue Trades (DARTs) were 16% higher than the second quarter a year ago. That is the strongest DARTs number we have seen in quite a while, and it definitely shows that investors have at least started to get back into this market. Pre-tax profit margin in the electronic brokerage segment was 58% this year, compared to just 53% a year ago. Total customer equity grew 31% from a year ago to a current level of $37.4 billion.
Unfortunately for Interactive Brokers, the market making segment continues to drag down earnings results. Net revenue in this segment plunged 26.2%, while pre-tax profit margin was just 11 percent. The company says that low volatility continues to weigh on the market making business.
Shares of IBKR were little-changed after this most recent earnings report. They are trading less than one dollar from a 52 week high.
For a closer look at the company’s second quarter earnings click here.