Interactive Brokers Group Inc. (NASDAQ: IBKR) saw its shares plummet 8.60% in after-hours trading on Tuesday following the release of its first-quarter 2025 earnings report. The sharp decline came despite a revenue beat and the announcement of a stock split and dividend increase, as investors focused on the company's earnings miss.

The online brokerage firm reported adjusted earnings per share (EPS) of $1.88 for the quarter, falling short of analysts' expectations of $1.92. This miss overshadowed the company's strong revenue performance, which came in at $1.427 billion, surpassing the estimated $1.4 billion. The revenue figure represents an 18.62% increase compared to the same period last year.

Interactive Brokers also announced some positive news that failed to offset the negative sentiment: - A four-for-one forward stock split, aimed at making stock ownership more accessible to investors - An increase in the quarterly cash dividend from $0.25 to $0.32 per share, payable on June 13, 2025

Despite these shareholder-friendly actions, investors seemed to focus on the earnings miss as a sign of potential challenges. The company's pretax profit for the quarter was $1.055 billion, slightly above the estimated $1.030 billion, while net income reached $964 million.

The mixed results highlight the current market environment's challenges for financial services companies. While Interactive Brokers demonstrated strong growth in several areas, including a 32% year-over-year increase in total accounts to 3.62 million and a 23% rise in customer equity to $573.5 billion, the earnings miss appears to have overshadowed these positive developments.

As the market digests this information, it remains to be seen whether the announced stock split and dividend increase will help mitigate the negative sentiment surrounding the earnings miss in the coming days. Investors will likely keep a close eye on the company's ability to meet earnings expectations in future quarters while maintaining its strong revenue growth trajectory.