IBKR Interactive Brokers announces preliminary financial estimates for the quarter, sees Q3 EPS of $0.55-0.65 vs $0.47 First Call consensus; approves share repurchase program of up to 8 mln shares (20.42 -0.67) -Update- Co expects income before income tax and minority interest to be between $325-375 mln and diluted EPS to be $0.55-0.65 (vs $0.47 bconsensus) for the quarter to end on September 30, 2008. Co believes that the impact of the recent significant market events have unduly depressed the price of the co's common stock, and the Board of Directors has therefore determined that a program of stock repurchases would be an opportunistic use of available funds. Co approves a share buyback program by its subsidiary IBG, authorizing it to repurchase up to 8 mln shares of the common stock. "Our strong financial profile and cash position provide us with the opportunity to repurchase our stock to return value to shareholders. The repurchase program reinforces our belief in the long-term value of our stock, which is being negatively affected by the current credit market environment. IBG LLC has more than $4 billion of equity capital and does not rely on outside liquidity to any meaningful extent and is therefore relatively unaffected by recent events." (stock is currently halted)
q3 eps guided to .55-.65 prev est .47. ceo says company has strong cash position. buyback is 8 million shares. comp has more than 4 bill of equity capital
The statement from the chairman a while ago, and now this "assurance" with buyback would scare me if I were a shareholder. Most "good" banks are selling their stock to the public, not offering to buy it from them. Wandering out loud; are they having a credit issue? Cash Flow vs. Credit? Edit: Hope I am wrong, I like my IB accounts as they are. btw: I am usually wrong.