Interactive Brokers Earnings: Strong Net Interest Income but Lower Client Account Growth Outlook

Interactive Brokers reported strong third-quarter results. The company reported net income to common shareholders of $167 million, or $1.56 per diluted share, on $1.15 billion of net revenue. Net revenue increased 45% from the previous year and 15% sequentially. The increase in revenue from the previous year was primarily from a 55% increase in net interest income. We don’t anticipate making a material change to our $112 fair value estimate for narrow-moat Interactive Brokers and view shares as undervalued.