The Wall Street Journal-20080118-TD Ameritrade Holding Corp-
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TD Ameritrade Holding Corp.
TD Ameritrade Holding Corp. posted a 20% profit rise in its fiscal first quarter ended Dec. 31 and raised its full-year earnings outlook, thanks to high client activity during a volatile quarter, as well as a favorable tax rate. Like rival Charles Schwab Corp., which reported strong revenue Wednesday, the Omaha, Neb., online broker is benefiting from dislocation at E*Trade Financial Corp., which is trying to win back retail customers after being burnt in the mortgage meltdown. Nevertheless, TD Ameritrade shares fell $1.65, or 8.7%, to $17.34 in 4 p.m. Nasdaq Stock Market trading. "On one hand, the company beat estimates and raised guidance, but on the other hand, the tax rate drove the results, which would have been short otherwise," said David Trone of Fox-Pitt Kelton. TD Ameritrade now expects full-year earnings of $1.23 to $1.41 a share, up from its October forecast of $1.15 to $1.39. The mean estimate of analysts polled by Thomson Financial were for $1.36 a share.
