Stock Watch: Strong Q3 Boosts Ameritrade

Ameritrade Holding Corp. (Nasdaq: AMTD) rose 15/16 to close at 13 3/16 Tuesday after the online brokerage reported stronger-than-expected results for the third quarter ended June 30th.

Earnings, however, were below year-earlier levels. The company earned $4.6 million, or 3 cents per share, down from $8.92 million, or 5 cents. Analysts had expected a loss of a penny per share.

Brokerage operations accounted for $14.6 million, or 8 cents per share, of the latest quarter’s income. Revenue rose to $149 million from $78.1 million.

Ameritrade said its $41 million investment in advertising paid off during the quarter, with 186,000 new accounts opened. Customers averaged seven trades per account during the quarter, with a 108 percent growth in trading activity.

“Ameritrade is an exceptionally lean organization, effectively managed to maintain consistent growth matched with profitability,” said Chief Executive Officer Tom Lewis.

Leave a Comment

Please sign in to post or reply to a comment. New users create a free account.

Technewsworld Channels