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TD Ameritrade Saw Strong Growth in Net New Client Assets


Sep. 12 2017, Published 8:41 a.m. ET

Earnings and revenue numbers

TD Ameritrade Holding (AMTD) has reported EPS (earnings per share) of $0.44 for fiscal 3Q17, thus beating analysts’ estimate of $0.41. The beat was mainly due to strong trading volumes in the quarter. The company reported revenues of $931.0 million, which reflects a rise of 11.1% on a YoY (year-over-year) basis. It beat analysts’ estimate of $897.8 million.

From fiscal 1Q17 through fiscal 3Q17, TD Ameritrade has managed to generate net revenues of $2.7 billion. From fiscal 1Q16 through fiscal 3Q16, its net revenues were $2.5 billion.

The company has witnessed a substantial growth of 61.7% in net new client assets for fiscal 3Q17 compared to fiscal 3Q16. In 3Q17, net new client assets were $22.0 billion compared to $13.6 billion in 3Q16. The substantial growth was mainly due to institutional channel and strong retail inflows.

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Expected EBITDA

TD Ameritrade (AMTD) is expected to report EBITDA (earnings before interest, tax, depreciation, and amortization) of $0.43 billion in fiscal 4Q17. Below are the expected EBITDAs of other brokerage companies (XLF) for 3Q17:

  • Charles Schwab (SCHW): $1.0 billion
  • E*Trade Financial (ETFC): $0.25 billion
  • Interactive Brokers Group (IBKR): $0.24 billion

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