second-quarter earnings fell 12% from a year ago on a 6% decline in sales, but the results were slightly better than Wall Street expected and the company pushed up full-year guidance.
The online brokerage earned $71.0 million, or 17 cents a share, in the quarter, compared with $81.0 million, or 19 cents a share, last year. Revenue was $232.5 million in the quarter compared with $246.8 million a year ago. Analysts were forecasting earnings of 16 cents a share on sales of $231.6 million in the latest quarter.
For the fiscal year ending in September, Ameritrade expects to earn 77 cents to 87 cents a share. The Wall Street consensus estimate is for earnings of 78 cents a share, according to Thomson First Call.
Ameritrade's second-quarter results were hamstrung by lower trading volume compared with a year ago, when the stock market was at the tail end of the rally that began in spring of 2003. Average client trades per day were 167,209 in the latest quarter compared with 211,917 a year ago, while average client trades per account were 11.7 in the 2005 quarter compared with 15.7 a year ago.
Ameritrade closed at $10.70 Monday, down 25% on the year.