Author Topic: IBKR - Interactive Brokers  (Read 171525 times)

atbed

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Re: IBKR - Interactive Brokers
« Reply #420 on: January 18, 2018, 09:04:15 AM »
Am I looking at this wrong or did they make 1.07 in diluted eps in 2017 (vs. 1.25 in 2016) ?

Most people would make a few adjustments to GAAP earnings to get a better view of the real earnings power. On a GAAP basis, diluted EPS is lower YoY. But on an adjusted basis, it is higher YoY. At first glance, the changes in the U.S. tax code seem to be the main culprit.

Agree. Financials are very messy, so I prefer to look at:

(1) Trading gains + commission & execution fees + net interest income + recurring other income minus (2) total non-interest expense

Then adjust for taxes



whiterose

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Re: IBKR - Interactive Brokers
« Reply #421 on: January 18, 2018, 10:51:59 AM »
Quote
Most people would make a few adjustments to GAAP earnings to get a better view of the real earnings power.

I know, but then you would only arrive at around 1.4 pre-tax diluted eps. Even though it's a growing business and has high margins+operating leverage, can the valuation be justified at this point?

KCLarkin

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Re: IBKR - Interactive Brokers
« Reply #422 on: January 18, 2018, 01:37:05 PM »
I know, but then you would only arrive at around 1.4 pre-tax diluted eps. Even though it's a growing business and has high margins+operating leverage, can the valuation be justified at this point?

I don't think your number is right but I'm going to wait for the 10k. Still, it is hard to justify the current valuation.

flesh

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Re: IBKR - Interactive Brokers
« Reply #423 on: January 18, 2018, 01:47:12 PM »
I know, but then you would only arrive at around 1.4 pre-tax diluted eps. Even though it's a growing business and has high margins+operating leverage, can the valuation be justified at this point?

I don't think your number is right but I'm going to wait for the 10k. Still, it is hard to justify the current valuation.

Whatever method you're using you should at least be annualizing q4 adjusted numbers and adding whatever growth you expect plus margin expansion plus coming off one of the least volatile years in history. For me, it's a hold.


KCLarkin

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Re: IBKR - Interactive Brokers
« Reply #424 on: January 19, 2018, 08:47:52 AM »
For me, it's a hold.

I'm holding too. I don't think the price is crazy. Yet.

KCLarkin

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Re: IBKR - Interactive Brokers
« Reply #425 on: January 19, 2018, 11:22:05 AM »
I know, but then you would only arrive at around 1.4 pre-tax diluted eps. Even though it's a growing business and has high margins+operating leverage, can the valuation be justified at this point?

Based on the transcript, it is $1.39 AFTER tax. Annualize Q4 and add the $0.25 anticipated annual tax savings and you are probably just shy of $2. Still not cheap but probably justifiable by some investors.

KCLarkin

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Re: IBKR - Interactive Brokers
« Reply #426 on: February 01, 2018, 10:56:16 AM »
Wow, IBKR really seems to have found its groove since dropping the market maker. January Stats:

903 thousand Daily Average Revenue Trades (DARTs), 40% higher than prior year and 29% higher than prior month.
Ending client equity of $133.9 billion, 50% higher than prior year and 7% higher than prior month.
Ending client margin loan balances of $30.1 billion, 61% higher than prior year and 2% higher than prior month.
Ending client credit balances of $48.1 billion, 13% higher than prior year and 2% higher than prior month.
497 thousand client accounts, 27% higher than prior year and 3% higher than prior month.
430 annualized average cleared DARTs per client account.

Liberty

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Re: IBKR - Interactive Brokers
« Reply #427 on: February 01, 2018, 11:00:19 AM »
Wow, IBKR really seems to have found its groove since dropping the market maker. January Stats:

903 thousand Daily Average Revenue Trades (DARTs), 40% higher than prior year and 29% higher than prior month.
Ending client equity of $133.9 billion, 50% higher than prior year and 7% higher than prior month.
Ending client margin loan balances of $30.1 billion, 61% higher than prior year and 2% higher than prior month.
Ending client credit balances of $48.1 billion, 13% higher than prior year and 2% higher than prior month.
497 thousand client accounts, 27% higher than prior year and 3% higher than prior month.
430 annualized average cleared DARTs per client account.

Yeah, they're cooking. The market is a big tailwind, though.
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atbed

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Re: IBKR - Interactive Brokers
« Reply #428 on: February 01, 2018, 11:07:39 AM »
Wow, IBKR really seems to have found its groove since dropping the market maker. January Stats:

903 thousand Daily Average Revenue Trades (DARTs), 40% higher than prior year and 29% higher than prior month.
Ending client equity of $133.9 billion, 50% higher than prior year and 7% higher than prior month.
Ending client margin loan balances of $30.1 billion, 61% higher than prior year and 2% higher than prior month.
Ending client credit balances of $48.1 billion, 13% higher than prior year and 2% higher than prior month.
497 thousand client accounts, 27% higher than prior year and 3% higher than prior month.
430 annualized average cleared DARTs per client account.

Yeah, they're cooking. The market is a big tailwind, though.

Yeah, they are benefiting from a massively good set-up. But great results!

KCLarkin

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Re: IBKR - Interactive Brokers
« Reply #429 on: February 01, 2018, 02:06:56 PM »
Yeah, they're cooking. The market is a big tailwind, though.

Until recently, the market was a big headwind (low volatility) but everything seems to firing on all cylinders now (interest rates, DARTs rebounding, account growth accelerating, tax reform).