TD Ameritrade Earnings Cheat Sheet: Yet Another Quarter of Profitability

TD Ameritrade Holding Corporation (NASDAQ:AMTD) reported its results for the fourth quarter. TD Ameritrade Holding 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 Fourth Quarter

Results: Net income for TD Ameritrade Holding Corporation rose to $163.7 million (29 cents per share) vs. $114 million (20 cents per share) in the same quarter a year earlier. This marks a rise of 43.6% from the year earlier quarter.

Revenue: Rose 16% to $703.5 million from the year earlier quarter.

Actual vs. Wall St. Expectations: AMTD fell short of the mean analyst estimate of 30 cents per share. Analysts were expecting revenue of $714.6 million.

Quoting Management: “Despite operating in a challenging economic environment for the past three years we have continued to deliver strong results in those areas within our control, and 2011 was no exception,” said Fred Tomczyk, president and chief executive officer. “We gathered a record $41 billion in net new assets, including a record $12 billion in the fourth quarter alone, an annual growth rate of 12 percent. We maintained our industry-leading position in trading with yet another year of record client trades per day, as we enhanced our mobile offering, launched our three-tier trading platform and completed the integration of thinkorswim. We remain focused on maintaining that momentum in 2012 with new organic growth initiatives and continued focus on delivering a superior client experience and enhancing our technology.”

Key Stats:

The company has now fallen short of estimates in the last two quarters. In the third quarter, it missed expectations by 2 cents with net income of 27 cents versus a mean estimate of net income of 29 cents per share.

The company has now been profitable for the last nine quarters, and for the last five, profit has risen year over year by an average of 3.2%. The quarter with the biggest boost was the most recent quarter, which saw a 43.6% surge.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from 29 cents a share to 27 cents over the last ninety days. At $1.12 per share, the average estimate for the fiscal year has risen from $1.10 sixty days ago.

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), JP Morgan (NYSE:JPM), 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)