Interactive Brokers Group stock beat expectations with earnings of $0.51 per share and revenue just under $1.5 billion, up 20% from last year. Despite 32% customer growth, profit margins improved. Analysts project similar Q3 earnings of $0.46 per share. Long-term growth is estimated at 12.5% annually, but the premium valuation of 33x earnings is concerning.

The stock surged 7.65% on Friday following the earnings beat. Analysts had forecast $0.45 per share. Existing customers drove revenue and profit growth, with DARTs up 49%. Management did not provide guidance for the coming quarter or year. The company’s growth rate may not justify its premium valuation, leading to doubts about recommending the stock.

Read more at Yahoo Finance: Why Interactive Brokers Stock Popped on Friday