Interactive Brokers Earnings: Online Brokers Face Free Stock Trading Apps

Interactive Brokers (IBKR) reports after the close, after Charles Schwab (CP) narrowly beat. Rival online brokers E-Trade Financial (ETFC) and TD Ameritrade (KSU) gear for their own reports. Free stock trading apps such as Robinhood are a growing threat to established online brokers. Check back later for Interactive Brokers earnings results.

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Interactive Brokers Earnings

Estimates: Interactive Brokers earnings should rise 14% to 49 cents per share, with revenue up 6.3% to $453 million, according to Zacks Investment Research. That would be the third straight quarter of decelerating top-line and bottom-line growth.

Results: To be announced.

Interactive Brokers Stock

Shares rallied 4.05% to 54.999 in afternoon trade on the stock market today. Interactive Brokers stock is trying to break a downtrend after hitting an 11-month low on Oct. 11.

Interactive Brokers stock earns a dull IBD Composite Rating of 67 out of a best 99. Its relative strength line, tracking a stock’s performance against the S&P 500, looked bearish for much of 2018.

Top Online Broker Stocks

Interactive Brokers took a spot on IBD’s sixth annual survey of the best online brokers.

Rival Charles Schwab reported strong earnings Monday but felt the impact of fee cuts in 2017. Average revenue per user also disappointed some analysts.

Interactive Brokers earnings may reflect pricing pressure on trading commissions, offsetting rate hikes.

Interactive Brokers, Charles Schwab, TD Ameritrade and E-Trade Financial stocks sank Aug. 21 on a JPMorgan Chase (JPM) plan to offer free stock trading. The financial giant’s move further threatens an industry roiled by Robinhood, the free stock trading app, free options trading app and free crypto trading app.

Recently, Robinhood enhanced its zero-trade platform and announced strong user growth. The fintech startup surpassed E-Trade in user numbers in May and now says it has over 6 million users. Its momentum is being closely watched by both Wall Street analysts and the established discount brokers.

Analysts expect E-Trade’s earnings to show a 51% gain to 83 cents a share with revenue up 19% to $715 million.

TD Ameritrade earnings are due Oct. 23.

Charles Schwab stock rose 0.7% Tuesday afternoon after earlier falling intraday to its worst level since last November. Shares fell 2.8% Monday following Schwab earnings. E-Trade stock advanced 1.2% Tuesday and TD Ameritrade 1.8%, but both are near 2018 lows.

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