TD Ameritrade Earnings: Net Income and Revenue Tick Lower, Still Above Analysts

TD Ameritrade Holding Corporation (NASDAQ:AMTD) reported its results for the third 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 Holding Corporation Earnings Cheat Sheet

Results: Net income for TD Ameritrade Holding Corporation fell to $153.8 million (28 cents per share) vs. $157.4 million (27 cents per share) a year earlier. This is a decline of 2.3% from the year-earlier quarter.

Revenue: Fell 2.7% to $667 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: TD Ameritrade Holding Corporation beat the mean analyst estimate of 26 cents per share. Analysts were expecting revenue of $660.8 million.

Quoting Management: “TD Ameritrade continued its organic growth momentum despite the difficult operating environment. Year-to-date, we have gathered net new client assets of $30.7 billion, or an annualized growth rate of 11 percent, and we remain on track for a fourth consecutive year of double-digit organic client asset growth,” said Fred Tomczyk, president and chief executive officer. “We remain focused on executing against our strategy and on managing what we can control in this difficult and uncertain environment. Our balance sheet is strong, and we remain well positioned to deal with today’s uncertain macroeconomic environment.”

Key Stats:

The company’s net income has fallen for two quarters in a row. In the second quarter, net income fell 20.4% from the year-earlier quarter.

The company topped expectations last quarter after falling short of forecasts in the second quarter with net income of 25 cents versus a mean estimate of net income of 26 cents per share.

Revenue has fallen in the past two quarters. In the second quarter, revenue declined 6.2% to $674.6 million from the year-earlier quarter.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 30 cents per share to 27 cents, indicating that analysts are growing pessimistic about the company’s performance next quarter. The average estimate for the fiscal year is $1.05 per share, down from $1.13 ninety days ago.

Competitors to Watch: The Charles Schwab Corp., E TRADE Financial Corp., optionsXpress Hldgs., Inc., TradeStation Group, Inc., Raymond James Financial, Inc., Interactive Brokers Group, Inc., National Holdings Corp., Investors Capital Hldgs. Ltd, Bank of America Corp., and Oppenheimer Hldgs. Inc.

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

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