TD AMERITRADE Holding Corp. Third Quarter Earnings Preview

TD AMERITRADE Holding Corp. (NASDAQ:AMTD) will unveil its latest earnings on Tuesday, July 19, 2011. TD Ameritrade Holding Corporation provides securities brokerage services, including trade execution, clearing services and margin lending, through its broker-dealer subsidiaries.

TD AMERITRADE Holding Corp. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 29 cents per share, a decline of 3.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 30 cents. Between one and three months ago, the average estimate was unchanged, but has since dropped during the last month. For the year, analysts are projecting net income of $1.13 per share, a rise of 16.5% from last year.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the second quarter, it reported profit of 30 cents per share versus a mean estimate of 28 cents. Two quarters ago, it reported net income of 25 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $691.5 million in revenue this quarter, a small decline from the year ago quarter. Analysts are forecasting total revenue of $2.76 billion for the year, a rise of 7.8% from last year’s revenue of $2.56 billion.

Analyst Ratings: Analysts are bullish on TD AMERITRADE as nine analysts rate it as a buy, one rates it as a sell and eight rate it as a hold.

Key Stats:

While the company has been profitable for the last eight quarters, income has fallen year over year by an average of 2.5% over the past four quarters. The quarter hit the hardest was the fourth quarter of the last fiscal year, that saw a 27.3% drop.

The company’s revenue has now risen for two straight quarters. In second quarter, revenue increased 13% to $719.5 million from the year earlier quarter. In the first quarter, the figure rose 5%.

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

Stock Price Performance: During April 15, 2011 to July 13, 2011, the stock price had fallen $3.73 (-16.9%) from $22.06 to $18.33. The stock price saw one of its best stretches over the last year between June 2, 2011, and June 13, 2011, when shares rose for eight-straight days, rising 9.8% (+$1.83) over that span. It saw one of its worst periods between March 28, 2011, and April 4, 2011, when shares fell for six-straight days, falling 4% (-85 cents) over that span. Shares are down 57 cents (-3%) year to date.

(Source: Xignite Financials)

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