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TD Ameritrade’s Projected Operating Expenses for Fiscal 4Q17

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Dec. 4 2020, Updated 10:50 a.m. ET

Operating expenses

TD Ameritrade Holding (AMTD) saw an increase in its total operating expenses for fiscal 3Q17 compared to fiscal 3Q16. In 3Q17, those expenses were $537.0 million compared to $490.0 million in 3Q16, which reflects a rise of 10.0%. The increase was mainly due to a substantial rise in employee compensation and benefits-related expenses.

The rise in professional services–related expenses in fiscal 3Q17 compared to fiscal 3Q16 also contributed to the rise in total operating expenses in 3Q17. Those expenses were $67.0 million in 3Q17 compared to $47.0 million in 3Q16, reflecting a 43.0% rise.

According to top management, the company should report total operating expenses of $530.0 million to $540.0 million in fiscal 4Q17, mainly due to costs related to the acquisition of Scottrade and several other strategic growth initiatives.

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EBITDA margin

TD Ameritrade Holding’s (AMTD) EBITDA (earnings before interest, tax, depreciation, and amortization) margin was 47.0% as of June 30, 2017. Other brokerage giants (XLF) reported the following EBITDA margins as of June 30, 2017:

  • Charles Schwab (SCHW): 44.2%
  • E*Trade Financial (ETFC): 66.6%
  • Interactive Brokers Group (IBKR): 47.9%
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