TD Ameritrade (AMTD) reported first quarter earnings that were $194 million, or 35 cents per share. In the same quarter a year ago, the company earned 26 cents per share. Revenue jumped 16 percent to $812 million. Analysts had expected TD Ameritrade to earn 34 cents per share on revenue of $800 million. The $812 million in revenue beat last quarter’s record quarterly revenue for the online broker. TD Ameritrade announced that during the first quarter the company saw record average client trades per day of 492,000, which is an impressive activity rate of 8.1%. Net new client assets of $12.2 billion were a big boost to the company in the second quarter as well.
Net revenues were $812 million, and 52% of that revenue was asset based. Pre-tax income came in at $317 million. Client assets are now $617 billion at TD Ameritrade. Expenses did come in slightly higher than analysts anticipated. Fred Tomczyk, president and CEO at TD Ameritrade, said retail engagement continued to improve in this quarter. He said, “Our quarterly activity rate was the highest we’ve seen in a decade.”
TD Ameritrade’s stock actually dropped a bit after this earnings release. Other online brokers set the bar very high with last week’s earnings releases, and the market had very high expectations for this report. In addition, TD Ameritrade’s stock is up more than 68% in the past year.
For the full press release on TD Ameritrade’s earnings click here.