Research Desk Line-up: Charles Schwab Post Earnings Coverage

LONDON, UK / ACCESSWIRE / July 20, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on TD Ameritrade Holding Corp. (NASDAQ: AMTD), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=AMTD, following the Company's disclosure of its financial results for the third quarter fiscal 2017 (Q3 FY17) on July 18, 2017. The Omaha, Nebraska-based Company's net revenues rose on a year-over-year basis, topping market consensus estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Investment Brokerage - National industry. Pro-TD has currently selected The Charles Schwab Corporation (NYSE: SCHW) for due-diligence and potential coverage as the Company announced on July 18, 2017, its financial results for Q2 2017. Register for a free membership today, and be among the early birds that get access to our report on Charles Schwab when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on AMTD; also brushing on SCHW. With the links below you can directly download the report of your stock of interest-free of charge at:

http://protraderdaily.com/optin/?symbol=AMTD

http://protraderdaily.com/optin/?symbol=SCHW

Earnings Reviewed

In Q3 FY17, TD Ameritrade's quarterly net revenues were a record $931 million, which was 11% higher than the $838 million reported in the year-ago same quarter. Net revenues numbers for the reported quarter beat Wall Street's estimates of $899.5 million. During the reported quarter, the Company's commissions and transaction fees fell 3% to $335 million from $347 million in Q3 FY16. Due to net rates and balanced growth, the Company's asset-based revenues surged 21% in Q3 FY17 to $573 million from $473 million in Q3 FY16.

For the quarter ended June 30, 2017, the Company reported net income of $231 million, or $0.44 per diluted share, compared to $240 million, or $0.45 per diluted share, in last year's comparable quarter. The Company's net income beat market consensus estimates of $0.41 per share. Meanwhile, the Company's non-GAAP net income for Q3 FY17 came in at $243 million, or $0.46 per diluted share, versus $254 million, or $0.48 per diluted share, in Q3 FY16.

Operating Metrics

During Q3 FY17, TD Ameritrade's total operating expenses was $537 million compared to $490 million in Q3 FY16. The Company reported operating income of $394 million, or 42.3% of net revenues, in Q3 FY17 compared to $348 million, or 41.5% of net revenues, in Q3 FY16. Pre-tax income for the reported quarter was $373 million, or 40.1% of net revenues, compared to $334 million, or 39.9% of net revenues, in Q3 FY16. Furthermore, EBITDA for the reported quarter came in at $437 million, or 46.9% of net revenues versus $393 million, or 46.9% of net revenues, in the last year's same quarter.

In Q3 FY17, the Company had record net new assets of $22.0 billion compared to $13.6 billion at the quarter ended June 30, 2016. The Company had annualized net new asset growth rate of 10% for the reported quarter versus 8% in the prior year's same quarter. During Q3 FY17, the Company had an average of 510,358 clients' trades per day versus 461,941 clients' trades per day in the previous year's corresponding quarter.

Balance Sheet

TD Ameritrade's interest rate-sensitive assets grew 6% y-o-y to $120 billion, as on the close of June quarter for fiscal 2017. The Company's client assets also increased 20% y-o-y to stand at $882.4 billion in Q3 FY17.

As of June 30, 2017, TD Ameritrade had cash and cash equivalents balance of $2.88 billion, down from $1.86 billion as on September 30, 2016. Furthermore, the Company's long-term debt balance was $2.56 billion as on June 30, 2017, compared to $1.82 billion as on September 30, 2016.

Dividend

In its earnings press release, TD Ameritrade's Board of Directors declared a $0.18 per share quarterly cash dividend, payable on August 15, 2017, to all holders of record of common stock as of August 01, 2017. Moreover, the company had returned $95 million during Q3 FY17 to its shareholders in form of cash dividends of $0.18 per share.

Outlook

For full year FY17, the Company expects EPS to be in the range of $1.50 to $1.80 per share. The Company also forecasts pre-tax margin to be between 38% and 42%.

Stock Performance

On Wednesday, July 19, 2017, the stock closed the trading session at $46.52, slightly falling 0.43% from its previous closing price of $46.72. A total volume of 3.86 million shares has exchanged hands, which was higher than the 3-month average volume of 2.59 million shares. TD Ameritrade's stock price soared 13.13% in the last one month, 22.87% in the past three months, and 55.43% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 6.70%. The stock is trading at a PE ratio of 28.82 and has a dividend yield of 1.55%. At Wednesday's closing price, the stock's net capitalization stands at $24.63 billion.

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