Shares of Interactive Brokers Group [IB] last traded down 8.8% to $24.73 in extended trading after falling as much as 13%, following the release of preliminary Q2 earnings. IBG reported a $37 million options trading loss in what it says was manipulated trading of Germany's Altana AG on the Deutsche Boerse. IB estimated Q2 pro forma diluted EPS of $0.26-0.28, on revenue of $281-299m. It earned $0.24/share on sales of $291m in Q2 2006. The options trading related loss was transferred from its European limited partnership. Germany's Federal Financial Supervisory Authority is investigating the trading of Altana. IB said its limited partner will attempt to recover the losses. Excluding the $37m loss and an $11m tax-related gain, EPS of $0.32-0.34 would have been within the range of two analysts who cover the company, according to Bloomberg.
Sources: Press release, Bloomberg
Commentary: Interactive Broker Group Should Raise Upwards of $1 Billion In IPO • Interactive Brokers Group S1 Review • Market Maker-Broker Interactive Brokers Group Going Public
Stocks/ETFs to watch: Interactive Brokers Group, Inc. (IBKR). Competitors: Investment Technology Group Inc. (ITG), NASDAQ Stock Market, Inc. (NDAQ), optionsXpress Holdings Inc. (OXPS)
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