TD Ameritrade (AMTD) reported second quarter results before the bell on Tuesday. Ameritrade earned $240 million in the quarter. Adjusted for pre-tax gains, TD Ameritrade earned 39 cents per share in the quarter. That was a penny better than the average estimate. The online broker posted revenue of $838 million, which was better than the average estimate of $830 million.
Daily Average Revenue Trades (DARTs) were 462,000 in the quarter. That’s an increase of a little more than 6 percent from the same period last year. Revenue from commissions and transaction fees rose 5.8 percent. The market volatility after the historic Brexit vote led to increased activity and certainly helped the bottom line.
TD Ameritrade brought in $14 billion in new client assets in the third quarter. That’s a healthy 16 percent rise from a year ago. Total client assets are now $736 billion. Pre-tax income came in at 40 percent of net revenues. Investment product fee revenue jumped by 13 percent to a record level of $96 million.
TD Ameritrade President Tim Hockey, who will take over as CEO on September 30 when Fred Tomczyk retires, said there was mixed investor sentiment in the previous quarter. Hockey said TD Ameritrade will continue to focus on innovation and providing clients with powerful tools.
Shares of AMTD rose 2.32 percent on Tuesday following this earnings release. A one year chart of AMTD is posted below.
For the full press release click here.