Interactive Brokers reports lower than expected profit and revenue in Q1

Interactive Brokers Group Inc. (NASDAQ: IBKR) released its quarterly financial report on Tuesday that highlighted a decline in its profit and revenue in the first quarter. Following the release of the earnings report, the electronic broker company recorded an over 4% drop in extended trading on Tuesday.

According to the investment holding company, its quarterly net profit came at £37.22 million that translates to 49 pence of earnings per share. In the same quarter last year, the figure was recorded at a higher £39.65 million or 52 pence of earnings per share.

Interactive Brokers Reports A 4.7% Decline In Quarterly Revenue

On an adjusted basis, however, the Connecticut-headquartered firm earned 56 pence per share in the recent quarter as compared to the year-ago figure of 45 pence per share. As per FactSet, experts had forecast the Interactive Brokers to make 52 pence of earnings per share in the first quarter.

On the revenue front, the firm reported a 4.7% decline to £430.50 million in Q1 as compared to £451.50 million that it recorded last year. Analysts, on the other hand, had anticipated the company to print an even higher £471.25 million in revenue in the first quarter.

On an adjusted basis, Interactive Brokers noted £470 million in revenue in the first quarter versus £377 million reported in the same quarter last year.

At £207 million, Interactive Brokers noted a 4.1% increase in its total net interest income in Q1 as compared to last year. Experts had forecast the company’s total quarterly net interest income at £220 million.

An significant decline of 12% was also reported in the firm’s total non-interest income in the first quarter that registered at £223.33 million.

Interactive Brokers Records A £71 Million Provisional Loss From Negative Oil Prices

The recent drop in the oil prices that pushed it into the negative territory resulted in a provisional £71 million loss for interactive brokers. The company, however, expressed confidence that the loss will not have a significant impact on its financial stature.

At £33 per share, Interactive Brokers is currently a little under 15% down year to date in the stock market. On March 23^rd, the stock plunged sharply to £29 per share. Its performance in 2019 wasn’t reported any better with an annual loss of roughly 13%.

At the time of writing, Interactive Brokers Group Inc. is valued at £14.52 billion and has a price to earnings ratio of 20.61.