TD Ameritrade’s Q2 Earnings Slump 20% on Lower Fees (TD)

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Online brokerage operator TD Ameritrade Holding Corp. ( TD ) on Tuesday posted a steep decline in fiscal second quarter earnings, but results still met analyst expectations.

The Omaha-based company reported fiscal second quarter net income of $136.7 million, or 25 cents per share, compared with $171.7 million, or 30 cents per share, in the year-ago period.

Revenue fell 6% from last year to $673.1 million, while commissions and transactions fees fell 14% to $292.1 million.

On average, Wall Street analysts expected a matching profit of 25 cents per share, albeit on slightly lower revenue of $672 million.

Although AMTD described its operating environment as "difficult," although the average daily client trades at Ameritrade were 388,000 - up from the prior quarter but still down from the same period a year ago.

TD Ameritrade shares fell 17 cents, or -0.9%, in premarket trading Tuesday.

The Bottom Line
Shares of TD Ameritrade ( AMTD ) have a 1.06% dividend yield, based on last night's closing stock price of $18.78. The stock has technical support in the $16-$17 price area. If the shares can firm up, we see overhead resistance around the $20-$21 price levels.

TD Ameritrade Holding Corp. ( TD ) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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