Interactive Brokers Earnings: Strong Start to Year as Client Account Growth Drives Commissions

Interactive Brokers reported strong first-quarter results. The company reported net income to common shareholders of $175 million, or $1.61 per diluted share, on $1.20 billion of net revenue. Net revenue increased 14% year over year and 6% sequentially. The increase in revenue from the previous year was primarily from a 17% increase in net interest income. Commissions increased 6% from a year ago and 9% sequentially. Interactive Brokers also raised its quarterly dividend to $0.25 per share from $0.10 per share. We don’t anticipate making a material change to our $118 fair value estimate for narrow-moat Interactive Brokers and view shares as fairly valued to slightly undervalued.