Interactive Brokers Earnings: Strong Client Account Growth and Trading Volumes Drive Commissions

Interactive Brokers reported strong second-quarter results. The company reported net income to common shareholders of $179 million, or $1.65 per diluted share, on $1.23 billion of net revenue. Net revenue increased 23% year over year and 2% sequentially. The increase in net revenue from the previous year was driven by a 26% increase in commissions and a 14% increase in net interest income from a year ago. The annual growth in commissions comes from a continued strong quarter of account growth and increases in trading volumes of stocks, options, and futures. We don’t anticipate making a material change to our $118 per share fair value estimate for narrow-moat Interactive Brokers and view shares as fairly valued.