TD Ameritrade Is Seeing Higher Trades: Can It Continue?
2016 performance
TD Ameritrade Holding (AMTD) is expected to post EPS (earnings per share) of $0.38 in the March quarter. This compares to $0.35 in the prior year’s quarter and $0.39 in the previous quarter. For 2016, the company is expected to see 7% growth in its bottom line with EPS of $1.60 backed by higher brokerage and interest income. TD Ameritrade has witnessed higher trades in the month of March on a rise in the broad market. The company’s innovative offerings backed by technology could lead to an increase in trades.
In the December quarter, TD Ameritrade reported a rise in net profits to $212 million. The company has expanded its assets and customer base. Total customer assets stood at $695 billion as of December 31, 2015, a 3% rise from the previous year. New client assets expanded by 10% to $17 billion in the December quarter.
Some of TD Ameritrade’s peers in the brokerage industry include E*TRADE Financial (ETFC), Interactive Brokers Group (IBKR), and Charles Schwab (SCHW). Together, these companies form 10.8% of the iShares US Broker-Dealers (IAI).
What is TD Ameritrade?
TD Ameritrade Holding is a financial services company. It provides securities brokerage services and related technology-based financial services to retail investors, traders, and independent registered investment advisers (or RIAs). The company provides its services through the Internet, through a national branch network, and through its relationships with RIAs.
Its services cater to clients trading in common and preferred stocks, futures and options, foreign exchange, new and secondary issue securities, American depositary receipts, closed-end funds, ETFs, mutual funds, fixed income securities, margin lending, cash management services, and annuities. TD Ameritrade provides client offerings primarily through trading and investing platforms.
Let’s move on next to TD Ameritrade’s client assets and whether they could stay at December levels.
Browse this series on Market Realist: