Upcoming AWS Coverage on CME Group Post-Earnings Results

LONDON, UK / ACCESSWIRE / January 20, 2017 / Active Wall St. announces its post-earnings coverage on TD Ameritrade Holding Corp. (NASDAQ: AMTD). The Company released its financial results for the first quarter fiscal 2017 (Q1 FY17) on January 18, 2017. The Omaha, Nebraska-based Company's earnings per diluted share rose 5% y-o-y, meeting market consensus estimates. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of TD Ameritrade Holding's competitors within the Investment Brokerage - National space, CME Group Inc. (NASDAQ: CME), announced on January 09, 2017, that it will release its earnings for Q4 and full-year 2016 before the markets open on Thursday, February 02, 2017. The Company has scheduled an investor conference call that day at 7:30 a.m. CT. AWS will be initiating a research report on CME Group in the coming days following its earnings release.

Today, AWS is promoting its earnings coverage on AMTD; touching on CME. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=AMTD

http://www.activewallst.com/registration-3/?symbol=CME

Earnings Reviewed

In Q1 FY17, TD Ameritrade's quarterly net revenues was a record $859 million, which was 6% higher than $812 million reported in the year-ago same quarter. However, total investment income numbers for the reported quarter missed Wall Street's estimates of $861.9 million. During the reported quarter, the Company's commissions and transaction fees increased $27 million, or 8% y-o-y, to $355 million. Due to high balance growth, the Company's asset-based revenues was up by $17 million, or 4% y-o-y, to $490 million.

For the quarter ended December 31, 2016, the Company reported net income of $216 million, or $0.41 per diluted share, compared to $212 million, or $0.39 per diluted share. The Company's net income also met market consensus estimates.

Operating Metrics

During Q1 FY17, TD Ameritrade's total operating expenses was $506 million compared to $469 million in Q1 FY16. The Company reported operating income of $353 million, or 41.1% of net revenues in Q1 FY17 compared to $343 million, or 42.2% of net revenues, in Q1 FY16. Pre-tax income for the reported quarter was $339 million, or 39.5% of net revenues, compared to $331 million, or 40.8% of net revenues, in Q1 FY16. Furthermore, EBITDA for the reported quarter came in at $396 million, or 46.1% of net revenues, versus $387 million, or 47.7% of net revenues, in the last year's comparable quarter.

In Q1 FY17, the Company had net new assets of $18.7 billion compared to $17.5 billion at the end of quarter ended December 31, 2015. The Company had annualized net new asset growth rate of 10% for the reported quarter. During Q1 FY17, the Company had an average of 486,801 clients' trades per day versus 438,108 clients' trades per day in the previous year's corresponding quarter.

Balance Sheet

TD Ameritrade's interest rate-sensitive assets grew 14% y-o-y to $125 billion, as on the close of December quarter. The Company's client assets also increased 15% y-o-y to stand at $797 billion ended of Q1 FY17.

As of December 31, 2016, TD Ameritrade had cash and cash equivalents balance of $1.66 billion, down from $1.86 billion as on September 30, 2016. Furthermore, the Company's long-term debt balance was $1.77 billion as on December 31, 2016, compared to $1.82 billion as on September 30, 2016.

Dividend

In its earnings press release, TD Ameritrade's Board of Directors declared an $0.18 per share quarterly cash dividend, payable on February 15, 2017 to all holders of record of common stock as of February 01, 2017. Moreover, the Company had returned $95 million during Q1 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 per share to $1.80 per share. The Company also forecasts pre-tax margin to be between 38% and 42%.

Stock Performance

At the closing bell, on Thursday, January 19, 2017, TD Ameritrade's share price finished the trading session at $46.32, slightly down 0.71%. A total volume of 2.42 million shares exchanged hands. The stock has advanced 55.23% and 66.49% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have gained 6.24%. The stock is trading at a PE ratio of 29.35 and has a dividend yield of 1.55%.

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SOURCE: Active Wall Street