TD AMERITRADE Holding Earnings: Here’s Why the Stock is Popping

TD AMERITRADE Holding Corporation (NASDAQ:AMTD) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up over 1%.

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TD AMERITRADE Holding Corporation Earnings Cheat Sheet

Results: Net income decreased -3.26% to $147 million (27 cents per diluted share) in the quarter versus a net gain of $151.96 million in the year-earlier quarter.

Revenue: Decreased 58.25% to $651 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: TD AMERITRADE Holding Corporation reported adjusted net income of 27 cents per share. By that measure, the company beat the mean analyst estimate of $0.24. It beat the average revenue estimate of $635.67 million.

Quoting Management: “Our record organic growth this quarter helped grow interest rate sensitive assets to a record $90 billion, up 14 percent from last year, leaving us even better-positioned for rising interest rates. In addition, market fee-based revenue is up 28 percent year-over-year, driven by our effective referral and sales processes.”

Key Stats:

Revenue increased 0.35% from $648.74 million in the previous quarter. Net income increased 2.43% from $143.51 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.26 to a profit $0.25. For the current year, the average estimate has moved down from a profit of $1.1 to a profit of $1.06 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)