This brokerage firm beat estimates by $0.02 in the last quarter, and institutions have been adding to their shares.
TD Ameritrade (AMTD)
from The Personal Capitalist
Moody’s Investors Service affirmed TD Ameritrade’s (AMTD) A3 long-term issuer and senior unsecured ratings. The ratings outlook remains stable. This reflects AMTD’s continued strong operating results and excellent debt service capacity.
AMTD benefits from a long-term relationship with the Toronto-Dominion Bank as its largest shareholder (41%). This would likely provide support to AMTD (should it be required) and reflects the benefit AMTD delivers from its insured deposit account (IDA) arrangement with TD.
AMTD has demonstrated impressive growth in customer assets in recent years representing 10% of its revenue base. Commission and transaction fees deliver 40-45% of its revenue. The September quarter ended with an average client trades per day of 403,000 and net new client assets of $13.4 billion. Client assets were at a record $653 billion, up a7% from last year. Net revenues were $795 million (the second best quarter ever) up 12% year-over-year. This delivered $0.38 in diluted earnings per share. The company bought back 3.1 million shares during the quarter.
We continue to feel AMTD is the most efficiently run discount broker and will hold our shares.
Sean Christian, The Personal Capitalist, 9524 East 81st Street, Suite B #1715, Tulsa, OK 74133, November 15, 2014