Benzinga | Jul 19, 2021 10:36AM EDT

Earnings Outlook For Interactive Brokers Group

Interactive Brokers Group (NASDAQ:IBKR) unveils its next round of earnings this Tuesday, July 20. Get prepared with Benzinga's ultimate preview for Interactive Brokers Group's Q2 earnings.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street analysts see Interactive Brokers Group reporting earnings of $0.83 per share on revenue of $681.28 million. In the same quarter last year, Interactive Brokers Group reported earnings per share of $0.57 on sales of $539.00 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street estimate would represent a 45.61% increase in the company's earnings. Sales would be up 26.4% on a year-over-year basis. Interactive Brokers Group's reported EPS has stacked up against analyst estimates in the past like this: Quarter Q1 2021 Q4 2020 Q3 2020 Q2 2020EPS Estimate 0.91 0.59 0.55 0.31EPS Actual 0.98 0.69 0.53 0.57Revenue Estimate 736.60 M 558.85 M 511.51 M 458.62 MRevenue Actual 893.00 M 599.00 M 548.00 M 539.00 M

Stock Performance

Shares of Interactive Brokers Group were trading at $62.97 as of July 16. Over the last 52-week period, shares are up 21.38%. Given that these returns are generally positive, long-term shareholders should be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Interactive Brokers Group is scheduled to hold the call at 16:30:00 ET and can be accessed here.