“I don’t expect us to rocket back here.”Īmeritrade continues to hold onto a substantial amount of cash and other liquid assets to help it weather the recession. “I think any recovery here is going to be slow and over a long period of time,” Tomczyk said in an interview.
Tomczyk said he is cautiously optimistic about the economy, but he thinks any significant bad news could still send the stock market down. The company estimates that for every quarter-point increase in the federal funds rate, Ameritrade’s earnings per share will increase by 7 cents.
Tomczyk said when the Federal Reserve does begin increasing interest rates, Ameritrade is likely to benefit significantly because it will generate more revenue on its asset-based fees. “Management has executed soundly and fundamentals have remained strong for the AMTD franchise in a difficult operating environment,” Chen wrote. Analysts are looking for $1.29 a share.Ĭredit Suisse analyst Howard Chen said in a research note that he thinks Ameritrade has performed well, but he expects a pullback in trading activity that will hurt the company’s prospects. The Omaha-based company expects to earn between $1.10 and $1.40 per share in fiscal 2010. “We couldn’t control the markets and we couldn’t control interest rates, so we focused on the things we could control,” said Fred Tomczyk, Ameritrade’s CEO and president. Over the past year, Ameritrade has tried to limit its costs, boosted advertising to attract more business and acquired thinkorswim. Its shares are still closer to the high end of their 52-week range of $9.34 to $20.93.
Its shares slipped 21 cents, or 1.1 percent, to close at $19.27 Tuesday. Revenue edged up to $657.9 million from $649.2 million a year ago.Īnalysts surveyed by Thomson Reuters expected earnings of 22 cents a share on $630.48 million in revenue. 30, down from $172 million, or 29 cents per share, a year ago. Ameritrade earned $156.7 million, or 26 cents per share, in the quarter that ended Sept.
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