Revenue, Profit Climb at Ameritrade - TheStreet

Revenue, Profit Climb at Ameritrade

The stock is higher by 7% in premarket trading.
Publish date:

Updated from 8:55 a.m. EDT


(AMTD) - Get Report

third-quarter earnings and revenue climbed as trading activity increased and the online broker realized savings from the acquisition of Datek.

The online broker earned $49.9 million, or 12 cents a share, in the third quarter, up from $5.8 million, or 3 cents a share, a year ago. Revenue rose to $188.5 million from $100.3 million.

Ameritrade said it recorded an average of more than 154,000 trades a day in the quarter, and the company opened 93,000 new accounts. In the second quarter, Ameritrade averaged about 116,000 trades a day and had 83,000 new accounts.

For the third quarter last year, the company averaged 74,000 trades a day, and it signed up 69,000 new accounts. The company had 2.97 million core brokerage accounts open at the end of the third quarter of 2003, compared with 2.91 million at the close of the second quarter.

In a statement on its Web site, Ameritrade said it was expecting fourth-quarter earnings of 6 cents to 14 cents a share, with revenue of $142 million to $214 million.

Analysts polled by Thomson First Call were looking for third-quarter earnings of 10 cents a share and revenue of $185.9 million. For the fourth quarter, analysts are forecasting a profit of 8 cents and a top line of $162.2 million.

Shares of Ameritrade were rising 60 cents, or 7%, to $8.84 in Instinet trading before the opening bell.