TD Ameritrade (AMTD) Stock Gains on Q3 Earnings Beat

TD Ameritrade (AMTD) stock is rising late Tuesday morning after the brokerage posted earnings and revenue that exceeded analysts’ expectations for the 2016 fiscal third quarter.
By Kaya Yurieff ,

NEW YORK (TheStreet) -- Shares of TD Ameritrade (AMTD) - Get Report are climbing 2.47% to $29.97 late Tuesday morning after the company reported better-than-expected results for the 2016 fiscal third quarter.

Before today's opening bell, the Omaha, NE-based brokerage posted adjusted earnings of 39 cents per share, topping analysts' forecasts by one cent.

Revenue for the quarter was $838 million, higher than analysts' projections of $830 million.

President Tim Hockey said the quarterly results reflected mixed investor sentiment.

"Long-term investors expressed some reticence to move new money, while traders increased their equity exposure. Both segments were opportunistic, using events like the historic Brexit vote, to lean into the market decline," he said in a statement.

Britain's vote last month to leave the European Union prompted a flood of trades that shook markets, caused jumps in trading volume and congested online platforms such as TD Ameritrade and Fidelity Investments, the Wall Street Journal noted.

Hockey added that he sees "bouts of volatility" continuing.

TD Ameritrade is a provider of securities brokerage services and related technology-based financial services.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on the stock.

The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and growth in earnings per share.

The team believes its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: AMTD

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