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Interactive Brokers beats estimates but stock falls

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Interactive Brokers Group Inc (NASDAQ:IBKR) reported fourth-quarter earnings that topped analyst forecasts, yet its shares declined 1.3% in after-hours trading. The automated broker posted adjusted earnings per share of $0.65 against an estimate of $0.59, with revenue of $1.64 billion, beating the $1.61 billion consensus.

The negative market reaction suggests investors looked past the beat to other metrics. Revenue grew 18% year-over-year, driven by a 22% surge in commission revenue from higher customer trading volumes. Net interest income also rose 20%. However, other income plunged 55% to just $10 million due to investing activities.

The company maintained impressive efficiency with a pretax profit margin of 79% and declared a $0.08 quarterly dividend. Customer equity reached a record $779.9 billion, a 37% annual increase. The stock's dip indicates traders may be wary of the volatility in ancillary income streams despite strong core brokerage performance.