TD Ameritrade (AMTD), the largest online discount brokerage by client trading volume, announced earnings that were in line with analysts estimates on Tuesday. Ameritrade earned a net income of $144 million, or 26 cents per share, for the quarter ending March 31. That is up slightly from the $137 million, or 25 cents per share, in the same quarter a year ago. TD Ameritrade reported revenue of $679 million, which was slightly above the $677.1 million that analysts expected. Of that $679 million in revenue, 55 percent was asset-based.
Daily Average Revenue Trades (DARTs) were an issue for Ameritrade again this quarter. DARTs totaled 378,000 per day in the quarter, which was down 2.4 percent from a year ago. That isn’t quite as bad as some of Ameritrade’s competitors, but it certainly isn’t the rebound in market activity that the company has been hoping for. Fred Tomczyk, CEO of TD Ameritrade, said during the conference call, “While retail investor sentiment has improved, a large number of investors remain cautious in this environment, and yet we continue to execute well against our strategy and on the items we can control.”
Net new client assets were up $13 billion during the quarter, which is an annualized growth rate of 11 percent. The company reported record client assets of approximately $517 billion.
As you might expect with a report that came in right about at expectations, Wall Street had very little response to this report. AMTD shares finished right around break even on Tuesday after reporting these earnings.
For the full earnings report click here.