Online brokerage firm TD Ameritrade Holding Corp (NASDAQ: AMTD) on Monday disclosed that its financial gains for the third quarter improved 23% while its board of directors goes on a hunt for a new CEO.
Stocks of TD Ameritrade are performing quite well on Wall Street. For the quarter, the holdings company said it raked in $555 million, or a dollar per share, indicating a rally from $451 million net income, or 79 cents a share, from the previous year.
AMTD gained $1.04 a share when adjusted for one-time costs and earnings, which exceeded estimates by seven analysts from Wall Street. These analysts, who were surveyed by Zacks Investment Research, saw gains of only 97 cents a share.
Separate ways
Tim Hockey, the Omaha, Nebraska-headquartered electronic trading platform current chief executive officer, on Monday bared his decision to resign in February next year.
"In discussing the best path forward, the board and I have decided that it was time for a new CEO to lead the company," Hockey stated.
Hockey did not go into details as to why he and the company's board of directors decided to part ways, but he emphasized he is not quitting his post to take on another job or to spend more time with his family.
Hockey agreed that he will remain as CEO to help with the company's transition after a search for his replacement is finalized.
Hockey was hired by TD Ameritrade in January 2016 from TD Bank Group, where he worked for more than three decades.
Key role
During his tenure as the company chief executive officer, he oversaw the integration of Scottrade Financial Services Inc., a $4-billion undertaking that merged two of the largest online holdings companies as price wars pressured trading commission revenue and forced competitors to join forces.
According to TD Ameritrade, its revenue soared 9% to $1.50 billion. The four Wall Street analysts surveyed by Zacks predicted $1.45 billion.
AMTD dropped 0.39% during an after-hours session in New York. The stock retreated almost 9% in the last 12 months, through Monday's close, against 18% and 21% declines at close competitors Charles Schwab Corp. and E-Trade Financial Corp, respectively.
The company said Hockey will continue his function as the top executive of TD Ameritrade until February 2020. If the board cannot find someone to replace him by then, he will take on an advisory position to help with the transition.
