Bernstein Research Raising Earnings Estimates On TD Ameritrade


We've written extensively about how RIA platforms/custodians have had full pipelines on the back of a continuing trend (not a full-blown, mass-exodus, though) of "breakaway" brokers. We even recently wrote a story about how do-it-yourself brokerages were becoming a force to be reckoned with. We wrote that in November DIY channel had $13.4 trillion in assets and counting. TD Ameritrade (Ticker: AMTD)., the parent of TD Ameritrade Insitutional, posted some good numbers. TD reported today that it had a record amount of net new client asses of about $16 billion, or a 13% ipmrovement over Q4 a year ago.  

Here is Bernstein Reseach's Brad Hintz's summary of AMTD earnings announcement:  

AMTD: Posting Record Net New Asset Flows (PDF Attached)

  • AMTD reported FY Q1'13 EPS of $0.27 versus consensus at $0.24 and our estimate at $0.25, beating forecasts for revenues and expenses. Annualized return on average equity was 13.3% for the quarter, down from 14.8% a year ago.
  • Net new assets grew at a 13% annualized org. growth rate, a record high. The firm also revised its IDA agreement with TD, in favor of an arrangement that benefits AMTD in a low interest rate environment, but also results in higher fees when rates rise.
  • We increase our FY'13 EPS estimate to $1.12 from $1.06 and our FY'14 EPS estimate to $1.28 from $1.26, primarily reflecting the overage and the impact from the revised IDA agreement. We rate the company market-perform with a $20 price target. 

Please or Register to post comments.

What's Von Aldo?

REP. Editor-in-Chief David Aldo Geracioti on the business of Wall Street from a free-market perspective.


David Aldo Geracioti

Is the editor-in-chief of REP. magazine.  He is also a devotee of the Austrian School of Economics leading lights Ludwig von Mises, Friedrich von Hayek, Murry Rothbard and to other thinkers in...
Blog Archive
Investment Category Sponsor Links


Sponsored Introduction Continue on to (or wait seconds) ×