Interactive Brokers Group Inc
TD Ameritrade’s Valuation Falls alongside the Industry
Historically, TD Ameritrade traded at a discount to its peers because of average operating margins. The sector’s valuations fell in the recent past.
Schwab’s Banking Operation Has More Assets, High Interest Income
Charles Schwab’s (SCHW) banking operations have seen strong growth over the past few quarters on accumulation of assets, expanding balance sheet, and interest income.
TD Ameritrade’s Projected Operating Expenses for Fiscal 4Q17
TD Ameritrade Holding (AMTD) saw an increase in its total operating expenses for fiscal 3Q17 compared to fiscal 3Q16.
Schwab Is Targeting Strong Operating Margins in 2017
Charles Schwab (SCHW) has improved its operating margins on improved interest income, administration fees, asset management fees, and new assets.
Interactive Brokers Group Posted Strong 1Q18 Results
Interactive Brokers Group (IBKR) posted earnings per share of $0.63 in 1Q18, beating Wall Street expectations by $0.07.
TD Ameritrade Stock Rises 25% in One Quarter on Assets, Acquisition
TD Ameritrade has seen a weaker performance than other brokerage giants. It posted EPS of $0.35 in fiscal 4Q16, missing analyst estimates of $0.38.
Could TD Ameritrade’s Client Assets Stay at December Levels?
For the institutional channel, TD Ameritrade had its second-best quarter ever in terms of net new client assets but fell year-over-year.
Why Charles Schwab’s Total Expenses Rose
Charles Schwab (SCHW) has seen an increase in its total expenses excluding interest expenses in 2Q17 as compared to 2Q16.
E*TRADE’s Daily Average Revenue Trades Are Consolidating
E*TRADE (ETFC) reported DARTs (daily average revenue trades) of $170,000 during the quarter—an increase of 1% from the prior quarter.
What Analysts Recommend for Interactive Brokers Group
Proprietary trading firms and hedge funds formed 4% of Interactive Brokers Group’s (IBKR) total accounts in the second quarter.
How Interactive Brokers Group Is Valued after Q2 Results
The primary reason for Interactive Brokers Group’s premium valuation is its strong second-quarter results.
Why Interactive Brokers Group’s Commissions Fell
In the second quarter, Interactive Brokers Group (IBKR) saw daily average revenue trades (or DARTs) of 797,000.
Interactive Brokers Posted Strong Second-Quarter Results
Interactive Brokers Group (IBKR) posted net revenues of $445 million in the second quarter, a rise of 14.9% on a YoY basis.
TD Ameritrade Posted Strong Third-Quarter Results
TD Ameritrade (AMTD) released its third fiscal quarter results on July 23. The company posted an EPS of $0.89, which exceeded analysts’ expectations.
How Analysts View Charles Schwab after Q2 2018
After second-quarter earnings, Charles Schwab (SCHW) has “strong buy” ratings from seven analysts and a “sell” rating from one analyst.
How Charles Schwab Is Valued after Strong Second-Quarter Results
Technological investments, competitive commission rates, and acquisitions are expected to drive the brokerage industry moving forward.
Why Schwab’s Asset Management and Administration Fees Fell
Asset management and administration fees contributed $814 million, or 32.7%, of Charles Schwab’s (SCHW) net revenues in the second quarter.
Charles Schwab’s Total Client Assets Rose in the Second Quarter
As of June 30, Charles Schwab (SCHW) had total client assets of $3.4 trillion, a YoY rise of 12% and a sequential rise of 3%.
E*TRADE’s Q2 Daily Average Revenue Trades Fell Sequentially
E*TRADE Financial posted second-quarter EPS of $0.95, which beat Wall Street estimates by $0.07.
Higher Net Interest Income Drove Charles Schwab’s Net Revenues
Charles Schwab’s (SCHW) second-quarter net revenues came in at $2.5 billion, a YoY rise of 17% and a sequential rise of 4%.
Interactive Brokers Group Missed Earnings Estimates in Q2 2018
On July 17, Interactive Brokers Group declared its second-quarter earnings. The company’s EPS was $0.39, which missed analysts’ expectations by $0.02.
Charles Schwab Posts Strong Q2 2018 Results, Shares Gain
Charles Schwab (SCHW) reported its second-quarter results on July 17. The company posted an EPS of $0.60, which exceeded analysts’ estimates.
Analysts Are Mixed on Interactive Brokers Group in July
In July, Interactive Brokers had two “strong buy” ratings out of six analysts tracking the stock.
A Look at Interactive Brokers Group’s Premium Valuations
The PE ratio of Interactive Brokers Group (IBKR) is 26.17x on an NTM (next-12-month) basis.
What Interactive Brokers Group’s Commissions Might Be in Q2 2018
In the second quarter, Interactive Brokers Group (IBKR) is expected to generate fees and commissions income of $195 million.
How Interactive Brokers Group’s Average Trades Have Trended
Interactive Brokers Group (IBKR) saw DARTs of 797,000 in the second quarter, which implies a sequential fall.
Interactive Brokers: Stabilizing Net Interest Margins in Q2 2018
In the second quarter, Interactive Brokers Group (IBKR) is expected to report net interest income of $255.1 million.
What’s in Store for Interactive Brokers Group in Q2 2018?
Interactive Brokers Group (IBKR) is expected to report its Q2 2018 earnings on July 17. It’s expected to have lower commissions.
Can Macros and Mixed Sentiment Drive E*TRADE’s Q2 2018 Earnings?
E*TRADE Financial Corporation (ETFC) is scheduled to release its second-quarter results on July 19. Wall Street is expecting EPS of $0.89, implying year-over-year growth of 27.1%.
Why Analysts Love Charles Schwab
In July, Charles Schwab (SCHW) got six “hold” ratings and one “sell” rating of the 20 analysts covering the stock.
A Look at Charles Schwab’s Valuations
Charles Schwab (SCHW) has a PE ratio of 18.99x on an NTM (next-12-month) basis.
Charles Schwab’s Asset Management and Administration Fees
In the first quarter, Schwab (SCHW) generated total asset management and administration fees of $851 million.
What Could Charles Schwab’s Trading Income Be in Q2 2018?
Moving forward, the markets could see higher volatility, mainly due to prevailing trade tensions that are disrupting global trade.
What Could Help Charles Schwab’s Net Interest Income in Q2 2018?
Charles Schwab’s net interest income is largely influenced by interest-earning assets and interest rates.
What’s Expected for Charles Schwab in Q2 2018?
On July 17, Charles Schwab (SCHW) is expected to post its second-quarter earnings. Analysts expect it to report EPS of $0.58.
How Do Interactive Brokers Group’s June Metrics Look?
Interactive Brokers Group reported daily average revenue trades of 799,000 in June, a month-over-month rise of 2% and a year-over-year rise of 17%.
Could Analysts Change their Ratings for Brokerages?
Over the long term, trade wars could negatively impact investors’ views on equities, primarily due to the risks they carry.
Brokerages in 2018: What to Expect
The final week of the second quarter might help brokerages, primarily because of higher client participation.
How Could Trade Wars Impact Bond Yields?
The primary reason for investors’ preference for safer instruments is highly unstable global factors.
What Impact Could Trade Wars Have on Brokerages?
Brokerages could see a negative impact from escalating trade wars between the United States and China in the long term.
What Factors Affect Analysts’ Views of the Brokerage Industry?
In June, six analysts recommended a “hold” for Charles Schwab (SCHW). Eight gave “strong buy” ratings, and one recommended a “sell.
What’s Next for the Brokerage Industry?
E*TRADE Financial Corporation (ETFC) saw a marginal sequential rise of 1.0% in its May DARTs.
A Look at E*TRADE’s Valuations
E*TRADE Financial’s EV-to-EBITDA multiple is ~40.8x on an LTM (last-12-months) basis.
Factors Driving Performance for E*TRADE and Charles Schwab
Charles Schwab (SCHW) has witnessed an increasing trend in its net interest income during the past few quarters.
What Digitization Means for the Brokerage Industry
Brokerage firms Charles Schwab, E*TRADE, and TD Ameritrade have beta values of ~1.7, ~1.2, and ~1.4, respectively.
E*TRADE Financial’s Daily Average Revenue Trades Rose in May
After lower volatility in April, the markets were again volatile in May, which boosted brokerages’ (VFH) daily average revenue trades (or DARTs).
Charles Schwab Reports Strong Numbers for May
Charles Schwab (SCHW) is expected to report strong numbers in the second quarter mainly due to supportive macro fundamentals.
ETFC’s StreetWise Results: Investors’ Take on the Economy
On June 11, E*TRADE Financial released results from a study on investor sentiment about the June Fed meeting and the overall economy.
What Could Attract Investors to Interactive Brokers
Market participants tend to prefer digital tools to execute trades because of lower costs and faster execution.
Could Interactive Brokers Impress Market Participants in Q2?
We’re almost halfway through the current year, and market dynamics seem to have supported brokerages (VFH).
How Technology Is Helping Interactive Brokers Group
On June 6, Interactive Brokers (IBKR) attended the Sandler O’Neill Global Exchange and Brokerage Conference, where it shared company insights.
Why Interactive Brokers Group’s Daily Average Revenue Trades Fell
In the second quarter, Interactive Broker Group is expected to witness a drop in its commission revenues sequentially due to a fall in its DARTs.
TD Ameritrade Stock: Analysts’ Recommendations
For TD Ameritrade, six analysts recommend a “hold,” one recommends a “strong sell,” five recommend a “buy,” and seven recommend a “strong buy.”
What Are TD Ameritrade’s Valuations?
TD Ameritrade’s (AMTD) PE ratio stood at 16.68x on a next 12-month basis, which implies discounted valuations.
TD Ameritrade Stock: Important Factors to Watch
TD Ameritrade’s (AMTD) performance will likely depend on the economic and political factors prevailing in the economy.
What Does the Third Quarter Hold for TD Ameritrade?
TD Ameritrade (AMTD) is expected to report an EPS of $0.8 in the fiscal third quarter, which ends in June.
TD Ameritrade: How Digital Tools Are Helping
TD Ameritrade (AMTD) operates in a very competitive industry. The company needs to retain its clients in order to experience long-term growth.
What Drove TD Ameritrade’s Second-Quarter Performance?
TD Ameritrade (AMTD) benefited from clients’ higher trading activities in the second quarter, which ended on March 31.
Analysts Have Mixed Views on Interactive Brokers
Of the six analysts covering Interactive Brokers (IBKR), two recommend “strong buy,” two recommend “hold,” and two recommend “strong sell.”
What Could Affect Interactive Brokers Group in Q2?
In the first quarter, Interactive Brokers (IBKR) exceeded analysts’ EPS and revenue expectations, like peers (VFH) Charles Schwab (SCHW) and E*TRADE Financial (ETFC).
Inside Interactive Brokers’ Premium Valuation
Interactive Brokers (IBKR) has an NTM (next-12-month) PE ratio of 32.7x, which is higher than peers’ average of 18.5x.
What’s Been Driving Brokerages?
Interactive Brokers (IBKR) drew market participants’ attention in the first quarter, primarily because of expectations of higher interest rates and strong volatility.
How Interactive Brokers’ April Numbers Could Affect Its Q2
In the first quarter, trade tensions and interest rate hike expectations made equity markets volatile, resulting in brokerages’ (VFH) customers trading more and boosting brokerages’ revenue.
A Look at Charles Schwab’s April Metrics
On May 14, Charles Schwab (SCHW) released its April metrics. Let’s look at how the brokerage did.
What Happened with Interactive Brokers’ Market-Making Business
Loss witnessed Interactive Brokers Group’s (IBKR) market-making business saw pre-tax income of -$35 million in the first three quarters of 2017, compared with $32 million in the same period of the prior year, primarily due to lower net revenue. Whereas the division’s trading gains fell from $124 million to $26 million, its other income rose to $14 […]
What Analysts Suggest after Charles Schwab’s 3Q17 Earnings
Charles Schwab (SCHW) is being analyzed by 19 analysts in October 2017. Eight of them have given it a “strong buy” rating, and five have rated it a “hold.”
Charles Schwab’s Premium Valuations after 3Q17 Results
Charles Schwab (SCHW) has a PB (price-to-book) ratio of 3.20x on a next 12-month (or NTM) basis. Its competitors’ average PB ratio on an NTM basis is 1.13x.
Behind E*TRADE’s Net Interest Income Increase in 2Q17
E*TRADE’s (ETFC) net interest income rose from $286 million in 2Q16 to $356 million in 2Q17.
TD Ameritrade Witnessed Rise in Fee-Based Revenues
TD Ameritrade Holding (AMTD) witnessed a substantial rise in its investment product fee-related revenues in fiscal 3Q17 compared to fiscal 3Q16.
What to Expect from Charles Schwab’s Dividends in 2017
Charles Schwab (SCHW) declared total dividends of $0.27 per share in 2016.
TD Ameritrade Saw Strong Growth in Net New Client Assets
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.
Schwab’s and E*TRADE’s Banking Models Are Complementary
In the first nine months of 2016, Charles Schwab (SCHW) added 55,000 new accounts to make a total of 1,088,000 accounts.
Charles Schwab Managed New Assets in Advisor Services
Charles Schwab’s (SCHW) Advisory Services segment had total assets of ~$1.4 trillion as of November 30, 2016. It was an 8.0% rise on a year-over-year basis.
TD Ameritrade 2017 Outlook Based on Asset Gains, Retirement
TD Ameritrade’s stock has risen 10% in the past year and 25% over the past three months on rising assets, investment products, and inorganic expansion.
Charles Schwab Stock and Valuations Rose on 3Q Performance
Charles Schwab’s (SCHW) stock has risen 23% during the past three months, mainly due to higher assets, strong operating performance, and improving broad markets.
Charles Schwab’s Bank Generating Strong Returns on Deposits
In the first nine months of fiscal 2016, Charles Schwab (SCHW) added 55,000 new accounts to 1,088,000 total accounts.
Charles Schwab’s Asset Management and Average Trades Rose in 3Q
Charles Schwab’s (SCHW) daily average trades rose to 543,000 in 3Q16 as compared to 518,000 in the previous quarter and 537,000 in 3Q15.
E*TRADE Bank Saw Continued Expansion, Supported Broking
E*TRADE’s bank offers its clients FDIC insurance on a certain amount of deposits. It deploys funds primarily in low-risk securities.
E*TRADE Saw Subdued DARTs amid Mixed Volatility in 3Q16
E*TRADE Financial reported DARTs (daily average revenue trades) of ~151,905 during 3Q16. It included 6,500 DARTs from the OptionsHouse acquisition.
TD Ameritrade Spends on Compensation, Promotions
TD Ameritrade’s expenses have risen over the past couple of quarters because it has spent heavily on advertisements and marketing for luring in new assets.
TD Ameritrade’s Investment Products Ride on Mutual Funds
TD Ameritrade (AMTD) has seen an expansion of its Investment Products division driven by investments in mutual funds and investment options.
Assets, Rates to Have Pushed E*TRADE’s Bank Revenues Higher in 3Q16
E*TRADE Financial (ETFC) operates the federally chartered savings bank E*TRADE Bank. This structure has been deployed by many major brokers in the US.
How Volatility Affects E*TRADE’s DARTs
E*TRADE Financial reported DARTs (daily average revenue trades) of ~153,000 in 2Q16. The company’s DARTs fell 8% from the previous quarter and rose 2% YoY.
Schwab’s Advisor Services to Rise in 3Q16 on Assets, Appreciation
Charles Schwab’s (SCHW) Advisor Services segment had total client assets of $1.2 trillion on June 30, 2016, forming 46% of the company’s total client assets.
Charles Schwab Sees Record Margins on Interest, Expense
Charles Schwab (SCHW) reported a strong pre-tax margin of 39.4% in 2Q16, as compared to 36.2% in 2Q15. For 1H16, the company has reported a 38.3% margin.
Charles Schwab Bank Expands on Assets, Products in 2016
In 1H16, Charles Schwab (SCHW) added 13,000 new accounts—a YoY rise of 6%. In 2Q16, the bank’s balance sheet expanded to $153.9 billion—a YoY rise of 26%.
TD Ameritrade’s Lower Ad Spending in Fiscal 3Q16 Led to Higher Margins
TD Ameritrade’s expenses fell by $13 million in fiscal 3Q16 compared to fiscal 2Q16, and they rose by $21 million compared to fiscal 3Q15.
TD Ameritrade’s Spread-Based Revenue Rise on IDA in Fiscal 3Q16
TD Ameritrade’s (AMTD) spread-based revenue rose by 3% to $377 million, led by insured deposit accounts and partially offset by a decline in stock lending.
Investment Products Contribution Rises for TD Ameritrade in Fiscal 3Q16
TD Ameritrade’s (AMTD) Investment Products division’s revenue rose by 12% to $96 million in fiscal 3Q16, compared to the same quarter in the previous year.
What Will Drive TD Ameritrade’s Spread-Based Revenue?
TD Ameritrade (AMTD) posted strong organic growth results in fiscal 2Q16. Trends for asset gathering, trading, and fee-based assets were strong.
Why TD Ameritrade Could See Higher Daily Trades in Fiscal 3Q16
TD Ameritrade (AMTD) reported an average of 509,000 daily trades (or DAT) in fiscal 2Q16, a rise of 7% year-over-year (or YoY).
TD Ameritrade Expects Net Assets on Retail in Fiscal 3Q16
TD Ameritrade (AMTD) ended its fiscal 2Q16 with a record $711 billion in client assets, up 2% from the previous year.
What’s TD Ameritrade’s Focus in Fiscal 3Q16?
TD Ameritrade (AMTD) is expected to post earnings per share (or EPS) of $0.37 in fiscal 3Q16 ended June 30, 2016, higher by one cent year-over-year.
New Assets to Benefit Schwab’s Investor Services in 2Q16
Charles Schwab’s (SCHW) Investor Services segment reported total client assets of $1.4 trillion in 1Q16, a rise of 1% from 4Q15.
Charles Schwab’s Bank Continues to Expand on New Accounts
In the first two months of 2Q16, Charles Schwab (SCHW) added 13,000 new accounts, representing 6% growth on a year-over-year basis.
How Will Charles Schwab Perform in 2Q16?
Charles Schwab (SCHW) is expected to post earnings per share (or EPS) of $0.33 as compared to $0.25 in the corresponding quarter last year.
SCHW and IBKR Command Premium Valuations among Brokers
The rise in interest rates is expected to be lower and slower due to a weak macro environment. Brokers might have to focus on expanding client assets to boost their returns.
How Brokerage Firms Are Managing Fee-Based Assets
Charles Schwab (SCHW) is expanding its asset base through third-party investment advisors as well as new initiatives.
E*TRADE Expenses Rise, Interest and Provisions Fall
E*TRADE’s loan portfolio ended the March quarter at $4.7 billion. The portfolio contracted by ~$0.3 billion from the prior quarter.
TD Ameritrade Saw Higher Daily Trades in 2Q16 due to Volatility
TD Ameritrade (AMTD) reported an average of 509,000 daily trades in fiscal 2Q16, up 7% on a year-over-year basis.