Interactive Brokers Group, Inc. (NASDAQ:IBKR) shares are trading lower Wednesday after the company reported worse-than-expected first-quarter revenue on Tuesday after the market closed.
- Interactive Brokers stock is showing downward pressure. What’s the outlook for IBKR shares?
Q1 Results
Interactive Brokers reported quarterly earnings of 60 cents per share, meeting the analyst consensus estimate, according to Benzinga Pro data.
Quarterly revenue came in at $1.67 billion, missing the Street estimate of $1.71 billion by 2.25%.
Customer accounts increased 31% to 4.75 million, while customer equity rose 38% to $789.4 billion. Total DARTs increased 24% to 4.37 million.
Customer credits climbed 35% to $168.8 billion and customer margin loans increased 35% to $86 billion.
Commission revenue rose 19% to $613 million on higher customer trading volumes. Customer trading volume in stocks, futures and options increased 25%, 20% and 16%, respectively.
Net interest income increased 17% to $904 million, primarily on higher average customer margin loans and customer credit balances.
Other fees and services increased 10% to $86 million, while execution, clearing and distribution fees decreased 12% to $106 million.
Pretax profit margin for the quarter was 77% both as reported and as adjusted, compared to 74% as reported and 73% as adjusted in the year-ago quarter.
IBKR Holds Near Highs As Bullish Trend Stays Intact
Interactive Brokers is sitting near the top of its 52-week range after setting a 52-week high in April, which can attract both breakout buyers and short-term sellers. The stock is trading 9.9% above its 20-day simple moving average (SMA) and 12.7% above its 100-day SMA, a setup that leans bullish for both short- and intermediate-term trend control.
The moving average convergence divergence (MACD), a trend/momentum measure, remains above its signal line with a positive histogram, which points to momentum still leaning upward despite the premarket dip. That lines up with the stock holding above key moving averages even as it consolidates below the April peak.
Over the past 12 months, the stock is up 102.24%, which is consistent with a sustained uptrend that has rewarded trend-followers. With price still well above the 200-day SMA (by 16.7%), the longer-term trend looks intact unless the stock starts losing key support zones.
Key Support: $64.00 — a prior demand zone that has acted as a line-in-the-sand.
Key Resistance: $83.00 — near the prior peak area where rallies have recently stalled.
Interactive Brokers Shares Edge Lower
IBKR Price Action: At the time of publication, Interactive shares are trading 0.74% lower at $79.03, according to data from Benzinga Pro.
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