TD Ameritrade’s Q3 Results Showing Solid YoY Growth

Depite weaker metrics than in Q2, the discount brokerage reported a 4% rise in revenues YoY, driven by strong growth

One of the biggest online stock brokers in the U.S.,TD Ameritrade Holding Corp (NYSE: AMTD), has released its results for the third quarter of fiscal 2015. Overall, the Omaha-based company was down against Q2 results, but showed steady YoY growth.

Indeed, the discount brokerage reported a 4% rise in revenues YoY, driven by strong growth in trading.

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The Company gathered approximately $11.7 billion in net new client assets, which represents a steady annualized growth rate of 7%, although down from double-digit growth figures in Q2, when the company delivered $16.3 billion in net new client assets.

The company’s net income rose to $197 million in Q3, or 36 cents per share, from $190 million, or 34 cents per share, a year earlier.

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The firm also reported 434,000 average client trades per day, down from 477,000 in Q2, but up 7.9% YoY, while net revenue rose 4.1 % YoY to $794 million, down from Q2 net revenues of $803 million.

Commenting on the results, Fred Tomczyk, President and Chief Executive Office, said, “As we complete our third quarter and look back on the last nine months, we remain upbeat about our growth and prospects for another strong year.”

“We continue to execute well against our growth strategy, with $47 billion in net new client assets gathered year-to-date, an organic growth rate of 10 percent and up 17 percent over last year. Likewise, average client trades per day, year-to-date, are 456,000, up 5 percent over last year. This leaves us with good momentum, and we will continue to invest in organic growth initiatives.”

Bill Gerber, Executive Vice President and Chief Financial Officer, added:  “Net revenues were up 4 percent from last year, driven by continued growth in trading and asset gathering. Year-to-date, earnings per share of $1.09 were up 5 percent, despite a continued difficult macroeconomic environment.”

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