Interactive Brokers Disappoints In Q1, Analysts Praise Account Growth Despite Stock Market Bloodbath

Interactive Brokers Group, Inc. (NASDAQ:IBKR) reported its first-quarter results on Wednesday, with downbeat sales and earnings.

Despite market selloffs, customers may not have stopped trading and the company's "secular account growth continues (and could even improve)," according to Goldman Sachs. 

The Interactive Brokers Analyst: Analyst James Yaro maintained a Buy rating, while reducing the price target from $222 to $219.

The Interactive Brokers Thesis: The company's net revenue missed consensus by 1%, partially offset by pre-tax margins that were 10 basis points higher, leading to adjusted earnings of $1.88 per share falling short of consensus of $1.91 per share, Yaro said in the note.

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Interactive Brokers' net interest income missed consensus by 5%, "as a result of a greater portion of customer balances in jurisdictions that have seen rapid rate cuts than we/consensus had contemplated," he added.

The company indicated that account growth is likely to have accelerated so far in April, despite the broader market selloff, the analyst stated.

"We believe that this should reassure investors that customers are not disengaging from trading so far, as in previous market sell-off episodes, and the company's secular account growth continues (and could even improve)," he further wrote.

Interactive Brokers has plans to launch new products to more markets through 2025, Yaro said.

IBKR Price Action: Shares of Interactive Brokers had risen by 0.01% to $157.91 at the time of publication on Thursday.

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• These Analysts Revise Their Forecasts On Interactive Brokers Following Q1 Results

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