TD Ameritrade (AMTD) on Tuesday reported a 20% decline in profits this quarter compared with a year ago, when it saw a record-breaking trading quarter. The Omaha-based firm's earnings per share totaled $0.25 for the second fiscal quarter versus $0.30 a year ago, meeting analysts' expectations.
Net income stood at $137 million for the quarter compared with $172 million a year ago and $152 million in the prior quarter. Revenues totaled $673 million, down 6% from $718 million a year ago.
President and Chief Executive Fred Tomczyk, in a phone interview with AdvisorOne, said earnings and revenue were "right on consensus," though he did acknowledge that TD Ameritrade's trades were down at a rate of 51,000 per day.
"While trading right now is a little bit soft, it's not terrible, where last year was the highest trading quarter in the history of our firm," Tomczyk said. "You're comparing the highest peak with a more subdued market right now. But other than that, we continue to gather assets at a good clip."
TD Ameritrade's asset gathering has been in excess of 10% for three and a half years in a row, he noted, adding that the firm gathered $10.8 billion in the quarter. That nearly 11% growth rate is double what it was three years ago, Tomczyk said.
Also on the call was newly named TD Ameritrade Institutional President Tom Nally, who replaced Tom Bradley as head of TDAI in February.
