Subdued results from TradeStation
21 October 2010 New York
Image: Shutterstock
TradeStation Group has reported 2010 third quarter net revenues of $29.6 million, net income of $3.1 million, and earnings per share of 8 cents, compared to 2009 third quarter net revenues of $32.4 million, net income of $3.7 million, and earnings per share (diluted) of 9 cents.
Included in 2010 third quarter net income are $2.4 million in non-recurring net federal, state and local tax benefits, as well as $426,000 of after-tax "mark-to-market" net losses, primarily from TradeStation Securities' investment in the Chicago Board Options Exchange (CBOE).
Excluding the non-recurring tax benefits and "mark-to-market" losses, the company would have had 2010 third quarter net revenues of $30.3 million, net income of $1.1 million, and earnings per share (diluted) of three cents.
Management believes that excluding the non-recurring tax benefits and "mark-to-market" losses provides investors with a better view of the results of the company's operations.
Brokerage commissions and fees for the 2010 third quarter were $26.0 million, as compared to 2009 third quarter brokerage commissions and fees of $28.6 million. Brokerage commissions and fees are the largest component of the company's net revenues.
"During a very difficult quarter, when market volatility, especially intra-day market volatility, decreased, we continued to generate net income and add new accounts," said David Fleischman, the company's chief financial officer. "We continue to believe that TradeStation's strength and positioning speak well to our chances of developing significant market share in the active trader space over the next several years."
Included in 2010 third quarter net income are $2.4 million in non-recurring net federal, state and local tax benefits, as well as $426,000 of after-tax "mark-to-market" net losses, primarily from TradeStation Securities' investment in the Chicago Board Options Exchange (CBOE).
Excluding the non-recurring tax benefits and "mark-to-market" losses, the company would have had 2010 third quarter net revenues of $30.3 million, net income of $1.1 million, and earnings per share (diluted) of three cents.
Management believes that excluding the non-recurring tax benefits and "mark-to-market" losses provides investors with a better view of the results of the company's operations.
Brokerage commissions and fees for the 2010 third quarter were $26.0 million, as compared to 2009 third quarter brokerage commissions and fees of $28.6 million. Brokerage commissions and fees are the largest component of the company's net revenues.
"During a very difficult quarter, when market volatility, especially intra-day market volatility, decreased, we continued to generate net income and add new accounts," said David Fleischman, the company's chief financial officer. "We continue to believe that TradeStation's strength and positioning speak well to our chances of developing significant market share in the active trader space over the next several years."
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