Charles Schwab and Interactive Brokers Revenue Double in Bull Market

With the incredible bull market in U.S. stock markets to record highs stockbrokers Interactive Brokers $IBKR and Charles Schwab $SCHW are set to report earnings with huge jumps in revenue expected. 

With the incredible bull market in U.S. stock markets to record highs stockbrokers Interactive Brokers $IBKR and Charles Schwab $SCHW are set to report earnings with huge jumps in revenue expected. The increased volatilty and higher Fed Funds rate means higher commission and interest income.

Algo TradingHigh Frequency Trading in a Bull Market a Broker’s Dream

Interactive Brokers $IBKR Reports After The Market Tuesday

Forecast: EPS of $0.39 on a 100% rise in revenue of $399

Last Quarter:

  • Electronic Brokerage: Net revenues rose 27% year over year to $367 million. Pre-tax income rose 13% to $142 million. Total DARTs for cleared and execution-only customers were 695,000, up 14% from the year-ago quarter. Pre-tax profit margin improved to 61% from 56% in the prior-year quarter.
  • Market Making: Net revenues collapsed 30% year over year to $30 million. Pre-tax income was $11 million, up 57% from the year-ago quarter. The income improvement was driven by decline in operating costs after the winding down of its U.S. options market making business. The segment’s results included a $10 million net recovery of exit costs. Pre-tax profit margin improved to 37% from 16% in the prior-year quarter.

 

Charles Schwab $SCHW Reports Before The Market Wednesday

Forecast: EPS of 41 cents with an increase of 13% in revenue to $1.23 billion

Last Quarter:

  • Client Assets: $3.18 trillion as of Sep 30, 2017
  • Core net new assets:  $51.6 billion as of Sep 30, 2017, up 72% year over year
  • Average interest-earning assets : Rose 10% to $214.3 billion at quarter end
  • Fee waivers: Fell to $1 million from $41 million in prior year quarter.

The brokers follow the earnings from the money center banks JPMorgan $JPM, Wells Fargo $WFC and PNC Financial $PNC which all announced big jumps in revenue.

Source; Morningstar

Live From The Pit

Leave a Reply

Your email address will not be published. Required fields are marked *