Interactive Brokers and Charles Schwab are set to report their third-quarter earnings results on Tuesday. The reports come amid rising market activity that has fueled a trading boom. Charles Schwab will kick off the earnings reports early on Tuesday.
Analysts forecast a 2% drop in earnings to 75 cents per share. Revenues are expected to grow by 3.9% year over year, reaching $4.786 billion. This quarter’s predicted decline would mark Schwab’s sixth consecutive quarter of earnings declines.
However, it would be the smallest drop over this period. There is optimism for the fourth quarter, with analysts projecting a return to growth. Over the past months, Charles Schwab’s stock has been on a gradual ascent.
On Monday, Schwab stock rose by 0.2%. It remains above its 50-day moving average but just below the 200-day line. Analysts remain hopeful for future growth, expecting a 23% rebound in earnings in 2025.
Meanwhile, Interactive Brokers will report its earnings late Tuesday. Wall Street predicts a substantial 17% rise in earnings per share to $1.82.
Interactive Brokers reports substantial earnings increase
They also predict a significant revenue increase to $2.29 billion, marking a quarterly best for the company. Interactive Brokers, popular among high-volume traders, saw sharp increases in client accounts and Daily Average Revenue Trades (DARTs) every month of the third quarter. Interactive Brokers has been aggressively expanding its product offerings.
These now include forecast contracts for the 2024 U.S. elections. The new products aim to help investors hedge against political volatility. Analysts forecast a 21% earnings per share gain for the full year, following a substantial 42% growth in 2023.
A slight earnings dip of 2% is expected in 2025. The stock closed Monday with a 0.1% increase, hitting a 52-week high intraday. The company’s stock has surged by 8.6% in the first two weeks of October.
This rounds off the year with an impressive 82.5% gain. Four analysts raised their price targets for the company in October, indicating strong confidence in the stock’s future performance.
Both Charles Schwab and Interactive Brokers are set for notable performances in their upcoming earnings reports. Rising market activities and strategic expansions influence performance. Investors and analysts will be closely watching the results for further indications of market trends.
