Shares of TD Ameritrade Holding Corp. fell after its earnings missed analysts' expectations.
The online brokerage, formed this year when Ameritrade Holding bought TD Waterhouse USA from Toronto-Dominion Bank, announced Tuesday that net income rose 35.7% from a year earlier, to $128.1 million, in its fiscal fourth quarter, which ended Sept. 29. Excluding one-time investment gains, the Omaha firm earned 20 cents a share. Analysts polled by Thomson First Call expected 22 cents a share.
TD Ameritrade's stock fell 4.87%, to $15.82, by midday Tuesday.
Revenue rose 78%, to $488.7 million, as commissions and transaction fees rose 26% and money market and mutual fund fees increased sevenfold.
TD Ameritrade's stock price has fallen as the firm faces increased pricing pressure from its competitors. In June, Charles Schwab Corp. cut prices on client transactions, and this month Bank of America Corp. began offering no-fee trading in certain states for customers who maintain a predetermined balance. In March, TD Ameritrade eliminated account maintenance fees for its retail customers.
