This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Ameritrade Trashed

Tanona writes that TD Ameritrade's nearly 10% cut in guidance was not expected.

"While TD Ameritrade can't control the markets or, in general, activity trends, it appears to be having some issues achieving the much-anticipated savings from the conversion." Ameritrade acquired purchased Toronto-Dominion Bank's retail brokerage, TD Waterhouse, in January 2006.

TD Ameritrade's stock was down $1.28 to $15.59 on Tuesday.

Charles Schwab (SCHW - Get Report) fared a bit better, partially from an acquisition in the quarter. The brokerage's profit rose 12% to $273 million, or 22 cents a share, meeting analysts' expectations.

Revenue rose 9% to $1.15 billion.

But average daily client trades dropped 16% last quarter to 230,400.

Schwab added 193,000 new brokerage accounts in the quarter, up 4% from a year earlier and 20% from the fourth quarter. The average fee per trade rose 7% from a year earlier to $14.33.

"With more predictable revenues and sustained expense discipline, we remained focused on delivering consistently strong financial performance," says CFO Chris Dodds. "Despite reduced client trading activity late in the quarter, we were able to increase our marketing investment by 35% over last year and still achieve a 33.9% pretax profit margin."

Total client assets rose 16% to $1.3 trillion. In the first quarter, on the heels of its $115 million purchase of 401(K) Co. from Nationwide Financial Services (NFS).

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AMTD $37.15 0.00%
ETFC $29.46 0.00%
SCHW $31.65 0.00%
AAPL $130.28 0.00%
FB $79.19 0.00%

Markets

DOW 18,010.68 -115.44 -0.64%
S&P 500 2,107.39 -13.40 -0.63%
NASDAQ 5,070.0260 -27.95 -0.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs