TD Ameritrade’s Third Quarter Earnings Sneak Peek

TD Ameritrade Holding Corp. (NYSE:AMTD) will unveil its latest earnings on Tuesday, July 17, 2012. TD Ameritrade Holding 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 net income of 26 cents per share, a decline of 3.7% 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 moved down. It also has dropped from 27 cents during the last month. Analysts are projecting profit to rise by 5.4% compared to last year’s $1.05.

Past Earnings Performance: Last quarter, the company fell short of estimates by one cent, coming in at profit of 25 cents per share against a mean estimate of net income of 26 cents. The company topped expectations in the first quarter.

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A Look Back: In the second quarter, profit fell 20.4% to $136.7 million (25 cents a share) from $171.7 million (30 cents a share) the year earlier, missing analyst expectations. Revenue fell 6.2% to $674.6 million from $719.5 million.

Wall St. Revenue Expectations: Analysts are projecting a decline of 2.8% in revenue from the year-earlier quarter to $665.6 million.

Analyst Ratings: With nine analysts rating the stock a buy, none rating it a sell and six rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose more than twofold in the first quarter and 15.5% in the fourth quarter of the last fiscal year before falling in the second quarter.

The company is looking to get back on track with this earnings announcement after a profit drop last quarter snapped a positive string of results. Net income rose 43.6% in the fourth quarter of the last fiscal year and 4.8% in the first quarter before dropping in the second quarter.

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

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