TD Ameritrade is one of the best online brokers for online stock trading, retirement planning and long-term investing. Today, the firm has released results for the quarter ended June 30, 2017. It has registered a net profit of $ 231 million. On the other hand, the revenue stands at $931 million which represents 11% growth compared to the same period last year. This unprecedented growth was contributed by increase in client trades per day and strong trading volumes.
The company is also pleased to report another quarter of strong growth on earnings before interest, tax, depreciation and amortization of $437 million. During the same period, TD Ameritrade recorded a pre-tax income of $373 million which represents 40% of net revenues. In addition, the earnings per share stands at $ 0.44 which represents a 2% decrease compared to the same period last year. The company has declared a quarterly cash dividend of $0.18 per share payable in August.
TD Ameritrade has recorded an annualized growth rate of 10% having set a new record on client assets of approximately $22.0 billion. Currently, the client assets stand at $882 billion which represents 20% annual increase. Further, the company has reported an average of 510,000 active client trades per day. The net new asset growth rate stands at $60.2 billion which is about 33% increase compared to the same period last year.
The company aims at an additional increase of client assets of approximately $85 billion in fiscal 2017. It’s committed to balance new investments, manage expenses and maintain high trading volumes. TD Ameritrade is forecasting a 42% increase on pre-tax margin. It also anticipates earning per share (EPS) of $ 1.80.
Tim Hockey; the president of TD Ameritrade has emphasized that, the asset inflows is a confirmation of a healthy trend. He has assured investors that the institutional channel will come up with cutting-edge solutions for asset gathering. Although it was an eventful quarter, there are plans to close Scottrade acquisition to enhance flexibility in fiscal 2018.