TD Ameritrade Holding Corp. (NDAQ:AMTD) moved up $0.85, or 4.9%, to $18.21 today after releasing its operating results and financial condition in an
8K filing with the SEC. The company reported its best quarter ever, as growing fees and increased retail trading helped lift the company's net income by 60% year over year. Ameritrade also experienced success in many other measures, including:
- Record net income of $146 million, or $0.24 per diluted share
- Record non-GAAP net income of $173 million, or $0.28 per diluted share
- Record pre-tax income of $239 million, or 45 percent of net revenues
- Operating margin of $278 million, or 52 percent
- Record EBITDA of $291 million, or 54 percent
- Net revenues of $535 million
- Average client trades per day of approximately 238,000
- Annualized return on equity of 34 percent for the quarter
- Client assets of approximately $278.2 billion, including $39.8 billion of client cash and money market funds
- Liquid assets of $499 million; cash and cash equivalents of $441 million
- 109,000 new accounts at an average cost per account of $360; 40,000 closed accounts; 6,260,000 Total Accounts; 3,255,000 Qualified Accounts
- Average client margin balances of approximately $7.3 billion. On Dec. 31, 2006, client margin balances were approximately $7.6 billion
The company also said that, like its competitors, it will be attempting to lean itself off of mostly commission-based income to more of an "asset gatherer". CEO Joe Moglia said, "By the end of this year, we talk about being able to move from a firm
that was almost totally based on transactions to one that's becoming
more and more of an 'asset gatherer' ... By the end of 2007, we will be generating more revenues based on our
assets alone than 100% of all of our expenses. And that includes our
advertising numbers." Moglia also told CNBC that he believes there may be consolidation within the sector, but maintained that he didn't want to insinuate that the Ameritrade was currently involved in any such transaction. Regardless, AMTD is definitely a stock
worth watching over the next few months.
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