TD Ameritrade Averaging 370,000 Client Trades/Day In April
April 17 2012 - 9:24AM
Dow Jones News
TD Ameritrade Holding Corp. (AMTD) said it's averaging 370,000
client trades per day so far in April, suggesting a third straight
monthly decline in trading volume.
The forecast, which is preliminary, implies the Omaha, Neb.
online brokerage's daily average revenue trades, or DARTs--a
measure of trading volume--are down 3% from March and 8% from a
year earlier. The year-ago period reflects some tough comparisons
for TD Ameritrade though, as it was the company's best quarter of
trading activity in its history.
The data also confirms trading activity was sluggish to start
2012 amid an on-going European sovereign-debt crisis and concerns
about a slowing economic recovery.
During a conference call with analysts, TD Ameritrade Chief
Executive Fred Tomczyk said, "there remains a sense of caution
among the retail investor despite improvements in the market in the
quarter."
While trading activity was strong to begin 2011, Tomczyk said
volumes this year reflect investors "waiting to see if the economy
and markets are for real this time."
Earlier Tuesday, TD Ameritrade said its fiscal second-quarter
earnings slumped 20% from a year ago as its trading revenue
plunged.
Within the quarter, Ameritrade's commission and transaction
fee-based revenue fell 14% from a year ago to $292 million, though
climbed 6.8% sequentially. The company posted DARTs of 388,000 in
period, down 12% from a year earlier, but up 5.5% from the previous
quarter.
Shares of TD Ameritrade recently traded down 0.9% at $18.61. The
stock has climbed 20% year-to-date as of Monday's close.
-By Brett Philbin, Dow Jones Newswires; 212-416-2173;
brett.philbin@dowjones.com
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