TD Ameritrade Earnings Cheat Sheet: Profit Falls

TD Ameritrade Holding Corporation (NASDAQ:AMTD) reported its results for the third quarter. TD Ameritrade Holding Corporation provides securities brokerage services, including trade execution, clearing services and margin lending, through its broker-dealer subsidiaries.

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TD Ameritrade Earnings Cheat Sheet for the Third Quarter

Results: Net income for TD Ameritrade Holding Corporation fell to $157.4 million (27 cents per share) vs. $179.4 million (30 cents per share) a year earlier. This is a decline of 12.3% from the year earlier quarter.

Revenue: Fell 1% to $685 million.

Actual vs. Wall St. Expectations: The mean estimate for the company was 29 cents per share.

Quoting Management: “Despite the economic uncertainty and what looks to be a seasonally slow summer, we delivered solid growth in net new assets and asset-based revenues. Year-to-date, we have gathered $29.1 billion in net new assets, an annualized growth rate of 11 percent,” said Fred Tomczyk, president and chief executive officer. “Our strong financial position enabled us to buy back close to five million shares, or one percent of our outstanding common stock. And, when that is combined with our quarterly dividend, we returned 80 percent of our quarterly net income to shareholders. We remain focused on initiatives that will drive client engagement and fuel organic growth.” “TD Ameritrade continues to deliver solid organic growth. Interest rate-sensitive balances reached a record high, including insured deposit account assets that have nearly doubled over the past two years and now exceed $50 billion,” said Bill Gerber, executive vice president and chief financial officer

Competitors to Watch: The Charles Schwab Corp. (NYSE:SCHW), E TRADE Financial Corp. (NASDAQ:ETFC), optionsXpress Hldgs., Inc. (NASDAQ:OXPS), TradeStation Group, Inc. (NASDAQ:TRAD), Raymond James Financial, Inc. (NYSE:RJF), Interactive Brokers Group, Inc. (NASDAQ:IBKR), Citigroup (NYSE:C), Investors Capital Hldgs. Ltd (AMEX:ICH), Bank of America Corp. (NYSE:BAC), and Oppenheimer Hldgs. Inc. (NYSE:OPY).

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(Source: Xignite Financials)