Have you been eager to see how TD Ameritrade Holding Corporation (NASDAQ:AMTD) performed in fiscal Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this Omaha, NE-based brokerage company’s earnings release this morning:
An Earnings Miss
TD Ameritradecame out with earnings per share of 35 cents lagging the Zacks Consensus Estimate of 38 cents.
Lower revenues and escalated expenses lead to earnings miss.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for TD Ameritrade depicted a neutral stance prior to the earnings release. The Zacks Consensus Estimate remained stable at 38 cents per share over the last 7 days.
Further, TD Ameritrade has a positive earnings surprise of 2.7% in the trailing four quarters.
Revenue Came In Lower Than Expected
TD Ameritrade posted net revenues of $829 million, which missed the Zacks Consensus Estimate of $836 million. Also, it compared unfavorably with the year-ago number of $831 million.
Key Developments:
- Concurrent with the earnings release, TD Ameritrade has announced a deal to acquire Scottrade Financial Services, Inc. in a cash and stock transaction valued at $4 billion.
- Net new client assets were reported at approximately $15 billion for the quarter.
- Average client trades per day of around 444,000, down 7% year over year.
- During the fiscal year 2016, the company repurchased approximately 12 million shares of its common stock.
- The company has also provided outlook for the fiscal year 2017, which includes expected earnings of $1.50–$1.80 per share for the year.
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for TD Ameritrade. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look unfavorable, it all depends on what sense the just-released report makes to the analysts.
(You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.)
How the Market Reacted So Far
Following the earnings release, TD Ameritrade shares were up nearly 1.8% in the pre-trading session. This is in line with what the stock witnessed in the prior-day’s session. Clearly, the initial reaction shows that the investors have considered the results in their favor. However, the full-session’s price movement may indicate a different picture.
Check back later for our full write up on this TD Ameritrade earnings report!
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TD AMERITRADE (AMTD): Free Stock Analysis Report
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