TD Ameritrade (AMTD) matched analysts expectations by reporting 36 cents per share in the second quarter. TD Ameritrade reported revenue of $794.5 million. Analysts estimates were for $797 million in revenue. Last year, Ameritrade earned 34 cents per share in the same quarter on revenue of $763 million.
Interestingly, Daily Average Revenue Trades (DARTs) were 434,000 during the quarter. That was up eight percent from last year, and that was definitely a stronger number than was expected. TD Ameritrade CEO Fred Tomcyzk said in an interview that the increased activity came largely from active retail traders who are trading more derivatives. Trading in July has been busier than normal because of the news flow, but Mr. Tomcyzk said he expects trading levels to slow down again soon. August has historically been the slowest month of the year for online brokers.
TD Ameritrade brought in $11.7 billion in net new client assets in the quarter. Total client assets now sit at a record $702 billion, which is up eight percent from a year ago. Investment product fee revenues were up eight percent from last year.
While Ameritrade’s results here were strong, the company did say that it sees fiscal 2015 results to be at the low end of their previous $1.45-$1.70 guidance range. Ameritrade doesn’t see an interest rate hike, and the company believes activity levels will likely dip in the near future.
Shares of AMTD were down 1.64 percent on the trading day Tuesday. Still, the stock is higher by more than 21 percent in the past 52 weeks.
Click here for the full earnings report from TD Ameritrade.