TD AMERITRADE Holdings Corp.

Company Description

TD AMERITRADE provides self-directed investors with brokerage services through its subsidiaries. The company offers products for all types of traders and investors as well as a national branch system and an expansive network of independent investment advisors.

Great Quarter

On Apr 21 the broker reported great second-quarter results for fiscal 2009 that included trading levels near a record high. Average client trades per day was roughly 325,000, up 8%. Investors who have been on the sideline for a long period of time have rushed back in fear of missing the run up. Is it good timing? That remains to be seen.

Regardless, net income came in at $132 million, or 23 cents per share, meeting analysts' expectations for the second consecutive quarter.

Buy Back Complete

During the second quarter TD AMERITRADE completed its repurchase program. Approximately 36 million shares were bought at an average price of $11.88.

Analyst Upgrades

The company also reaffirmed its full-year guidance of earnings between $0.90 and $1.15. Following the previously mentioned release the consensus estimate rose 8 cents, to $1.06, in the upper third of the company's guidance.

Forecasts for next year are averaging $1.24, which is up 11 cents over the past 3 months. While the projections are calling for a 20% contraction this year, the company should grow 17% next year.

Aqcuisition Complete

Earlier this month TD AMERITRADE announced that the deal to purchase thinkorswim, a growing online broker and educator that specializes in options. The combination of cash and stock is valued at just over $600 million.

The Chart

AMTD has had very consistent earnings results over the past 5 years, with just 2 misses. One of the misses came in the midst of the greatest financial crisis most have ever seen. Take a look below.