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
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.

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