Reasons Why Interactive Brokers Stock Is Moving Higher Today

Interactive Brokers (NASDAQ resonance code: IBKR)Shares climbed today as the button brokerage platform reported better-than-expected results in its first-quarter earnings report.

The company also raised its dividend significantly for investors.

As of 1:23 p.m. EST, the stock was up 3.31 TP3T.

Interactive Brokers Achieves Solid Growth

In a highly competitive brokerage environment, Interactive Brokers announced solid growth across the board, with revenues up 14% to $1.2 billion, in line with expectations.

The company benefited from rising interest rates, with net interest income reaching US$747 million, up 171 TP3T from the same period last year, but non-interest income, mainly commissions, also continued to grow, up 91 TP3T to US$456 million.

Aggregately, adjusted earnings per share increased 21% to $1.64, above the $1.63 estimate.

In addition to solid financial performance, Interactive Brokers achieved strong results in other key metrics, with customer accounts growing by 251 TP3T to 2.75 million, and customer margin lending, a key source of revenue, growing by 30.1 TP3T to $51.2 billion. Aggregate customer equity also grew by $36% to $465.9 billion.

Interactive Brokers' Next Steps

A rising stock market tends to benefit the brokerage industry as it attracts more capital into the market and encourages investors to borrow against margins. Interactive Brokers also benefited from the high interest rate environment, with net spreads widening from 2.24% to 2.41%.

Interactive Brokers did not give guidance, but it did raise its quarterly dividend from $0.10 to $0.25, which shows the company's confidence.

If the stock market remains healthy and interest rates continue to rise, Interactive Brokers should continue to achieve solid results.

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Jeremy Bowman does not own any of the aforementioned stocks.The Motley Fool recommends Interactive Brokers Group.The Motley Fool has a disclosure policy.

Why is Interactive Brokers stock higher today?