Hot Stock of the Day: TD Ameritrade Holding Corporation (NASDAQ: AMTD)

On Thursday, Shares of TD Ameritrade Holding Corporation (NASDAQ: AMTD) showed the bearish trend with a lower momentum of -1.93% to $48.22. The company traded total volume of 2,054,234 shares as contrast to its average volume of 2.28M shares. The company has a market value of $27.51B and about 570.58M shares outstanding.

TD Ameritrade Holding Corporation (AMTD) has released results for its 2018 fiscal year.

The Company’s results for the fiscal year ended September 30, 2018 include the following:

  • Net new client assets of about $92.0B, a growth rate of 8 percent
  • Record average client trades per day of about 811.0K, up 59 percent year over year
  • Net revenues of $5.50B, 62 percent of which were asset-based. Ending client assets of about $1.3 trillion, up 16 percent year over year.
  • $2.59 in GAAP earnings per diluted share, up 58 percent year over year, on net income of $1.470B. $3.34 in Non-GAAP earnings per diluted share, up 82 percent year over year.
  • Pre-tax GAAP income of $1.89B, or 35 percent of net revenues
  • Ending interest rate-sensitive assets of $147.0B, down 5 percent year over year

Fourth Quarter 2018 Results:

TD Ameritrade also released its results for the quarter ended Sept. 30, 2018, which include the following:

  • Net new client assets of about $24.0B, an annualized growth rate of 8 percent.
  • Average client trades per day of about 795.0K, up 50 percent year over year
  • Net revenues of $1.40B, 64 percent of which were asset-based.
  • $0.80 in GAAP earnings per diluted share, up 105 percent year over year, on net income of $454.0M. $0.92 in Non-GAAP earnings per diluted share, up 88 percent year over year.
  • Pre-tax GAAP income of $609.0M, or 44 percent of net revenues.

Capital Management:

During the 2018 fiscal year, the Company paid $477.0M in cash dividends, which included four quarterly dividends of $0.21 per share. The Company will increase its quarterly cash dividend by $0.09 per share, a 43 percent increase. It has declared a $0.30 per share quarterly cash dividend, payable on November 20, 2018 to all holders of record of common stock as of November 6, 2018.

During the September quarter, the company paid $255.0M in cash to repurchase 4.60M shares. As of September 30, 2018, the Company has 21.0M shares remaining for share repurchases under its stock repurchase program.

Fiscal 2019 Outlook:

The Company has also released its outlook for the 2019 fiscal year, which reflects a low end of $5.75B in revenue and a range of $2.90B to $3.00B of operating expense.

The Company offered net profit margin of 27.00%. ROE was recorded as 19.00% while beta factor was 1.18. The stock, as of recent close, has shown the weekly downbeat performance of -0.02% which was maintained at -1.51% in this year.

Grover Beam

Grover Beam has over 14 years experience in the financial services industry giving him a vast understanding of how news affects the financial markets. He is an active day trader spending the majority of her time analyzing earnings reports and watching commodities and derivatives. He has a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.

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