The largest U.S. discount broker reported a 34.7% year-over-year increase in profit to $194 million, thanks largely to net new client assets of $12.2 billion, an 8% annualized growth rate. Profit equated to 35 cents a share, a 35% year-over-year increase and in line with estimates of analysts polled by Thomson Reuters I/B/E/S.
TD Ameritrade also posted record revenue of $812 million, a 19.6% year-over-year increase. Furthermore, the broker had a record in average client trades per day of approximately 492,000 for an activity rate of 8.1%.
The stock was down 1.89% to $32.22 at 11:24 a.m. on Wednesday.
Separately, TheStreet Ratings team rates TD AMERITRADE HOLDING CORP as a "buy" with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TD AMERITRADE HOLDING CORP (AMTD) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."