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Updated: 7:53 AM Oct 27, 2009
Update: TD Ameritrade Says 4Q Net Income Fell 9 Pct
Omaha, Nebraska Online brokerage TD Ameritrade Holding Corp. will released its fourth-quarter earnings report Tuesday morning.
Posted: 5:57 AM Oct 27, 2009Reporter: Associated Press Email Address: desk@1011now.com |
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Online brokerage TD Ameritrade Holding Corp. will released its fourth-quarter earnings report Tuesday morning.
Investors expect the current low interest rates to continue limiting the Omaha-based company's interest-based revenue. But this fall's improvement in the stock market may boost Ameritrade's trading-based revenue enough to counteract the lower interest revenue.
Analysts surveyed by Thomson Reuters expect TD Ameritrade to report quarterly earnings per share of 22 cents on $630.48 million in revenue.
Company officials have said they want TD Ameritrade to be ready to excel when markets improve. So Ameritrade has been maintaining substantial cash reserves while looking for possible acquisitions and strengthening its own business.
Online brokerage TD Ameritrade Holding Corp. says its fiscal fourth-quarter profit fell 9 percent as its expenses rose while low interest rates limited its revenue growth.
The company says it handled 35 percent more trades on average per day and its trading-based revenue soared almost 38 percent.
But it says low interest rates drove its asset-based revenue down 29 percent. The net effect was a slim 1 percent increase in overall revenue.
It says rising expenses meant its profit was $156.7 million, or 26 per share, in the quarter that ended Sept. 30. That's down from $172 million, or 29 cents per share, a year ago.
Analysts expected earnings per share of 22 cents a share.
The company expects to earn between $1.10 and $1.40 per share in fiscal 2010. Analysts are looking for $1.29 a share.
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