2011 Q1 Earnings: TD Ameritrade Boosts Net New Assets 13%

The company also reported record average client trades per day of about 439,000

TD Ameritrade said Monday its earnings in the first quarter were $172 million, or $0.30 per share, beating analysts’ estimates by $0.02 per share. Earnings grew 7% over last year's results, while net income increased about 6%.

The company said it had net new client assets of $11.5 billion in the quarter, up from $9.7 million in the previous quarter and $10.2 million in the year ago-period.

The company, based in Omaha, Neb., also reported record average client trades per day of about 439,000, an increase of 16% over last year’s results.

It had total net revenue in the quarter of $718 million – about half of which was asset-based and the other half transaction-based.  Earnings analysts had expected the company to produce revenue of $702 million.

"We continued our organic growth momentum by delivering another strong quarter, highlighted by record results in net new assets, trades per day, net revenues and total client assets," said President and CEO Fred Tomczyk (left), in a press release.

Client assets grew about 21% year over year to some $412 billion. About one-third of these assets are held in TD Ameritrade Institutional, or advisor-custodial accounts.

(Unlike rival Charles Schwab, which reported its earnings on April 15, TD Ameritrade does not break out its custodial results in its earnings reports.)

"TD Ameritrade has delivered double-digit organic net new asset growth in eight of the last 10 quarters," said Bill Gerber, executive vice president and CFO, in a statement.

Other Financial Issues

During the second quarter of fiscal 2011, TD Ameritrade repurchased 2 million shares of its common stock at an average price of $21.03 per share, for approximately $43 million. It has 24.8 million shares remaining on its existing stock repurchase authorization.

TD Ameritrade also announced that it has declared a $0.05 per share quarterly cash dividend, which is payable on May 17.

On Feb. 25, according to the company, Standard & Poor's upgraded its credit rating for the second time since 2008 to A- from BBB+. The Company also received its second ratings upgrade from Fitch Ratings to A- from BBB+ on April 15. Both ratings carry a "Stable" outlook.

"Our strong free cash flow, solid balance sheet and prospects for future earnings growth have led to two credit ratings upgrades in the midst of this continuing difficult economic environment," Tomczyk said.

Read AdvisorOne's 2011 Q1 earnings calendar for more information about the finance sector.

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