TD Ameritrade (AMTD) reported earnings on Tuesday, and the results came in largely in line with analysts expectations. TD Ameritrade earned 34 cents per share, which is exactly what the average analysts estimate was. Revenue came in slightly above estimates at $763 million versus estimates of $755.5 million. The company’s profits were up three percent compared to last year, while revenues rose by 4.4 percent.
Daily Average Revenue Trades (DARTs) were just about flat from last year. DARTs came in at 401,000 for the quarter, which was significantly lower than the 492,000 number reported in the first quarter by the broker. Last year during the second quarter, DARTs were 399,000. Ameritrade executives said in the conference call that DARTs are just 396,000 so far in the month of July. The extremely calm nature of the market in recent months is definitely slowing down many traders.
Ameritrade saw new assets rise by 24 percent to $13.4 billion. It was the best quarter in the company’s history for new assets. Overall client assets rose by five percent to $650 billion. Pre-tax profit margins were 40.6 percent in the quarter, which is right around the same level they have been at for quite some time.
Fred Tomczyk, president and CEO of TD Ameritrade, said he believes revenue growth and asset gathering is going well for the company. He added, “While the markets are experiencing low volatility and summer seasonality, retail investors have remained bullish. We have good momentum to finish out the year and we’re well positioned going forward.”
Shares of AMTD dropped by about 1.5 percent on Tuesday after the report, but gained most of those losses back on Wednesday.
Click here for the full earnings press release from TD Ameritrade.