optionsXpress gets 18% profit bump

Online brokerage firm optionsXpress Holdings Inc. reported an 18% increase in first quarter profit, helped out by an increase in new accounts, but fell short of Wall Street expectations.
APR 20, 2007
By  Bloomberg
Online brokerage firm optionsXpress Holdings Inc. reported an 18% increase in first quarter profit, helped out by an increase in new accounts, but fell short of Wall Street expectations. The Chicago-based online brokerage firm recorded net income of $21.3 million, or 34 cents per share, compared to $18 million, or 29 cents per share during the year-ago period. Revenues increased 18% to $54.7 million from $46.4 million during first quarter of 2006. Analysts surveyed by Reuters Estimates forecasted net income of 36 cents on revenues of $56.44 million. optionsXpress said that 10,200 new accounts were added in the quarter, a 24% increase from the year-ago period. "Our business continued to perform well in the first quarter despite a soft retail trading environment during a time of year that is typically more active," said David Kalt, chief executive of optionsXpress, according to a statement. Assets under management increased 25% to $5 billion, from $4 billion during the year-ago period. The number of trades made per account on an annualized basis was 35, down from 43 in the first quarter of 2006. During the quarter, optionsXpress' daily average revenue trades, or DARTS, increased 4% to 30,700 from 29,400 in the first quarter.

Latest News

Five-person Raymond James team jumps to Janney in Maryland
Five-person Raymond James team jumps to Janney in Maryland

The group led by a 37-year industry veteran brings $470 million in assets to the Philadelphia-based broker dealer.

$20B Merit looks to next phase as Constellation takes minority stake
$20B Merit looks to next phase as Constellation takes minority stake

The Atlanta, Georgia-based national wealth firm revealed its new PE partner as prior backers Wealth Partners Capital Group and HGGC’s Aspire Holdings exited their investments.

$350M father-son duo hops from Osaic to Equitable Advisors
$350M father-son duo hops from Osaic to Equitable Advisors

The latest departures in Ohio mark another setback for the hybrid RIA, which is looking to "expanding its presence across all models and segments of the wealth management industry.”

Fresh off HPS acquisition, BlackRock inks deal for $7.3B ElmTree Funds
Fresh off HPS acquisition, BlackRock inks deal for $7.3B ElmTree Funds

The St. Louis-based real estate investment firm gives the asset management giant a valuable access point to the roughly $1 trillion net lease market.

SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees
SEC charges Chicago-based investment adviser with overbilling clients more than $2.5M in fees

Eliseo Prisno, a former Merrill advisor, allegedly collected unapproved fees from Filipino clients by secretly accessing their accounts at two separate brokerages.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.