TD Ameritrade (AMTD) reported third quarter earnings that rose to 38 cents per share. That compares favorably to both the 36 cents the company reported a year ago as well as the 36 cents that analysts expected from the online broker this quarter. Net income for TD Ameritrade was $211 million compared to $200 million last year. Net new assets jumped 32.7 percent to $13.4 billion in the quarter. Net revenue rose by 12 percent to $795 million. Total operating expenses rose 6.3 percent to $457 million. The rise was due to higher comployee compensation and benefits as well as higher clearing and execution costs.
Daily Average Revenue Trades (DARTs) were up 5.5 percent year-over-year to 402,638. The average fee-based investment balance rose 17.7 percent to $144.0 billion. TD Ameritrade gave some guidance for their 2015 earnings as well. Ameritrade expects to earn between $1.45 and $1.70 per share in 2015. The average analyst estimate sits at $1.61 per share.
TD Ameritrade also declared a 25 percent dividend hike in its quarterly dividend to 15 cents per share. The new dividend will be paid on November 20, 2014 to shareholders of record as of November 6.
Notably, TD Ameritrade management mentioned in the earnings call that trades on Ameritrade’s mobile platform accounted for 13 percent of the total trades in the quarter. In 2010, mobile trades accounted for only 3 percent of the total trades at TD Ameritrade. Ameritrade executives said they intend to continue to focus on the fast-growing mobile segment of the business.
Click here for the full TD Ameritrade earnings release.