Interactive Brokers (IBKR) reported third quarter results that matched analysts estimates at 32 cents per share. The company earned just 26 cents per share in the same quarter last year. The online broker reported revenue of $326.3 million. That revenue figure was 1.7% higher than the consensus analysts estimates. It was also 2.4% higher than the revenue from the same quarter in 2012.
The company operates in two major divisions: the electronic brokerage segment and the market making segment. As has been the case in recent quarters, it was once again the electronic brokerage that drove earnings growth. Total DARTs increased 21% from the same quarter last year. Customer accounts grew 13% from last year to 231,000. Customer margin borrowings were $3.5 billion higher than last year, ending the quarter at $12.7 billion. Customer equity grew by 31% from the same quarter in 2012. Pretax profit margin in the electronic brokerage segment ended the quarter at 56%, up from 48% last year.
The market making segment didn’t perform as poorly as the last few quarters, but it’s still weak. Income before taxes fell to $88 million from a level of $90 million last year. The low levels of volatility in the stock market continue to hurt this business.
Interactive Brokers will pay a dividend of 10 cents per share on December 13, 2013. This will be payable to shareholders of record as of November 29, 2013.
Shares of IBKR traded largely flat following this earnings releases as investors seemingly had trouble deciphering whether this report was a positive or negative one on the whole.
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