TD Ameritrade Holding First Quarter Earnings Sneak Peek

TD Ameritrade Holding Corp. (NYSE:AMTD) will unveil its latest earnings tomorrow, Tuesday, January 22, 2013. 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 24 cents per share, a decline of 11.1% 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 26 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 24 cents during the last month. Analysts are projecting profit to rise by 0% compared to last year’s $1.06.

Past Earnings Performance: The company is looking to top estimates for the third straight quarter. Last quarter, it reported profit of 26 cents per share against a mean estimate of net income of 25 cents, and the quarter before, the company exceeded forecasts by 2 cents with profit of 28 cents versus a mean estimate of net income of 26 cents.

Start 2013 better than ever by saving time and making money with your Limited Time Offer for our highly-acclaimed Stock Picker Newsletter. Click here for our fresh Feature Stock Pick now!

A Look Back: In the fourth quarter of the last fiscal year, profit fell 12.3% to $143.5 million (26 cents a share) from $163.7 million (29 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 7.9% to $648.7 million from $704.7 million.

Here’s how TD Ameritrade Holding traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

AMTD

Wall St. Revenue Expectations: On average, analysts predict $634.6 million in revenue this quarter, a decline of 2.9% from the year-ago quarter. Analysts are forecasting total revenue of $2.63 billion for the year, a decline of 0.4% from last year’s revenue of $2.64 billion.

Analyst Ratings: With 10 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:

The company is trying to use this earnings announcement to rebound from profit declines in the last three quarters. Net income fell 20.4% in the second quarter of the last fiscal year, by 2.3% in the third quarter of the last fiscal year and again in the fourth quarter of the last fiscal year.

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 6.2% in the second quarter of the last fiscal year and 2.5% in third quarter of the last fiscal year before falling again in the fourth quarter of the last fiscal year of the last fiscal year.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

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