Online brokerage house TD Ameritrade Holding Corporation (NASDAQ:AMTD), reported strong third-quarter fiscal earnings today beating Wall Street expectations, with revenues up 80%.
The company said earnings increased sequentially due to significant expense reductions and it gathered US$20bln in net new client assets for the quarter.
The average number of client trades per day was 784,000, up 54% year-over-year.
"Thanks to outstanding operational and business performance, we delivered strong profitability in the quarter,” said Tim Hockey, TD Ameritrade president and chief executive officer in a release.
"We’re on a mission to leverage our size, scale and know-how to make investing simpler and more personal than ever before."
Client assets were approximately US$1.2 trillion, up 39% year-over-year.
Company reports net revenue of US$1.4bln
The Nebraska-based firm’s quarterly earnings skyrocketed 80%. TD Ameritrade earned US$0.79 per share on net revenue of US$1.4bln.
“It was an excellent quarter as substantial expense reductions drove record net income and EPS. Investor engagement was robust, with strong client net buying,” said Steve Boyle, executive vice president and chief financial officer.
“At the same time, we’re clearly seeing the expected benefits of our Scottrade acquisition. In fact, we achieved many cost savings sooner than expected, with approximately $212 million in synergies realized through June. The strength of these results more than offset a slight decline in trading revenue compared to the prior record quarter.”
The company also announced it paid US$119 million, or US$0.21 per share, in cash dividends in its third fiscal quarter.
Shares of TD Ameritrade perked up 2.8% at $US59.06 in after-hours trading on Monday.