TD Ameritrade Earnings: Second Straight Quarter of Rising Net Income

Falling revenue did not prevent TD Ameritrade Holding Corporation (NASDAQ:AMTD) from reporting a profit boost in the first 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 First Quarter.

Results: Net income for TD Ameritrade Holding Corporation rose to $152 million (27 cents per share) vs. $145 million (25 cents per share) in the same quarter a year earlier. This marks a rise of 4.8% from the year earlier quarter.

Revenue: Fell 0.6% to $653.4 million from the year earlier quarter.

Actual vs. Wall St. Expectations: AMTD beat the mean analyst estimate of 26 cents per share. It fell short of the average revenue estimate of $671.5 million.

Quoting Management: “We continue to execute well against our growth strategy in the face of a difficult market environment,” said Fred Tomczyk, president and chief executive officer. “Maintaining our industry-leading growth rate, we gathered $10.2 billion in net new client assets, an annualized growth rate of 11 percent. We remain focused on maintaining this organic growth momentum, keeping our expenses in check and using our strong balance sheet and free cash flow to take advantage of opportunities as they present themselves.”

Key Stats:

The company beat estimates last quarter after falling short in the previous two quarters. In the fourth quarter of the last fiscal year, it missed the mark by one cent, and in the third quarter of the last fiscal year, it fell short by 2 cents.

Net income has increased 9.6% year over year on average across the last five quarters. The biggest gain came in the fourth of the last fiscal year, when income climbed 43.6% from the year earlier quarter.

Revenue fell last quarter after seeing a rise the quarter before. Revenue rose 15.5% to $704.7 million in the fourth quarter of the last fiscal year from the year earlier.

Looking Forward: The average estimate for the second quarter remains unchanged at 28 cents a share. For the fiscal year, the average estimate has moved down from $1.22 a share to $1.16 over the last ninety days.

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), National Holdings Corp. (NHLD), Investors Capital Hldgs. Ltd (AMEX:ICH), Bank of America Corp. (NYSE:BAC), and Oppenheimer Hldgs. Inc. (NYSE:OPY).

Investing Insights: Will the iPad 3 Be the Next Catalyst for Apple’s Stock?

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

 

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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