TD Ameritrade CEO Hockey Announces Surprise Exit
OMAHA, Neb. -- Online brokerage TD Ameritrade Holding Corp. reported Monday that its fiscal third-quarter earnings jumped 23 per cent and said it's searching for a new CEO.
The Omaha, Nebraska-based company said that it earned US$555 million, or US$1 per share, in the quarter. That's up from US$451 million net income, or 79 cents per share, a year ago.
When adjusted for one-time gains and costs, Ameritrade earned US$1.04 per share, which topped Wall Street expectations.
The seven analysts surveyed by Zacks Investment Research expected earnings of 97 cents per share.
Ameritrade's current CEO Tim Hockey said Monday he has decided to leave the firm in February.
"In discussing the best path forward, the board and I decided that it was time for a new CEO to lead the company," Hockey said.
He declined to say exactly why he and the board decided that, but he said he is not leaving for another job or to spend more time with family.
Hockey agreed to stay that long to help with the transition after a search for the new chief executive is conducted.
Hockey has led TD Ameritrade since the fall of 2016 and oversaw the integration of rival Scottrade after that acquisition.
The online brokerage said its revenue grew 8 per cent to US$1.49 billion. The four analysts surveyed by Zacks expected US$1.46 billion.
Ameritrade's asset-based fees helped generate enough revenue growth to offset a slight decline in its trading-based revenue.
TD Ameritrade shares slipped 30 cents to US$52.10 in after-market trading following the release of the earnings report.