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TD Ameritrade’s Performance Going Forward

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Earnings per share

TD Ameritrade Holding (AMTD) is expected to report EPS (earnings per share) of $0.67 in fiscal 2Q18. That represents an increase from $0.52 in fiscal 1Q18, which was in line with analysts’ expectations. In fiscal 1Q18, the company saw a favorable momentum in its core metrics.

TD Ameritrade also saw positive momentum in all its client-related activities, DARTs (daily average revenue trades), and accounts trading. That momentum continued in the initial weeks of January 2018, which would positively impact the company’s fiscal 2Q18 results. In fiscal 1Q18, positive momentum was also witnessed in the buying activity of retail clients and in net revenues.

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Expected revenues

TD Ameritrade is expected to generate revenues of $1.3 billion in fiscal 2Q18, which represents a marginal increase from fiscal 1Q18. In fiscal 1Q18, the company posted revenues of $1.26 billion, which exceeded analysts’ expectations.

According to TD Ameritrade management, there was positive momentum in the trading of blockchain-related securities along with Bitcoin. The trend has been apparent since November 2017. So a rise in trading could provide a push for the company’s revenues in the coming months. Another factor that could positively impact its revenues is the conversion of the Scottrade brokerage accounts, which has resulted in an increase in TD Ameritrade accounts.

In the quarter ended December 31, 2017, AMTD’s competitors Charles Schwab (SCHW), Interactive Brokers Group (IBKR), and E*TRADE Financial (ETFC) posted EPS of $0.41, -$0.02, and $0.64, respectively.

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