TD Ameritrade (AMTD) reported first quarter earnings that met analysts estimates on a per share basis at 35 cents, but their revenue came in at just $803 million versus analysts estimates of $821 million. That revenue figure was down 1.1 percent from a year ago. Earnings per share were level with last year’s results.
There were several reasons for the disappointing results. TD Ameritrade’s commissions revenue fell 6.4 percent as clients did less energy commodities trading. This caused TD Ameritrade’s average commission price to dip to $12.02 from a level of $12.47 a year ago. The all-important Daily Average Revenue Trades (DARTs) number also hurt in the first quarter. DARTs were 476,590 in the first quarter, which was a 3.1 percent decline from a year ago. In addition, expenses grew 3.7 percent from a year ago to $507 million.
While these results were a slight disappointment compared to expectations, it is important to point out that this quarter was a still good one for the online broker. TD Ameritrade reported net new assets of $16.3 billion, a 10 percent increase from a year ago.
On the earnings call, TD Ameritrade guided estimates toward the low end of previous estimates ($1.45 to $1.70 per share) for fiscal 2015 results. Low rates are really starting to hurt TD Ameritrade and other brokers ability to turn a profit. TD Ameritrade CEO Fred Tomczyk said, “The June Fed Funds increase that everybody expected is now out to December, and the yield curve is flatter than any economist expected.”
Shares of AMTD were down a little more than five percent following this news.
Click here for the full results from TD Ameritrade.