Ameritrade Amps Up

Thanks to continued investor enthusiasm, discount broker Ameritrade (Nasdaq: AMTD  ) this morning announced increasing trade volume and raised expectations for its fiscal 2004 first quarter. Shares are bouncing up almost 5% today on the news. After several dreary years, Ameritrade and fellow brokers E*Trade (NYSE: ET  ) and Charles Schwab (NYSE: SCH  ) have experienced a resurgence in business over the past several quarters.

In November, Ameritrade opened 15,000 net new brokerage accounts, which is down from the 20,000 net new accounts opened in October. However, average daily trading volume rose to 180,000 from 170,000 in October.

Because of the strength, Ameritrade now expects to earn $0.14-$0.17 a share for the first quarter (ending Dec. 31). Analysts were predicting $0.14 a share, and Ameritrade earned $0.05 a share in last year's Q1.

Ameritrade hopes its fortunes will continue because of investor activity and its recent acquisitions. The company announced in November that it's buying Bidwell & Co., adding 100,000 accounts and $5 billion in assets. In October, Ameritrade bought Brokerage America and purchased in June.

For all of fiscal year 2004, Ameritrade's expectations are for a wide range of earnings: $0.37-$0.59. Analysts currently expect $0.55 a share. It seems likely that management could tighten its outlook as it moves further into the year. Shareholders who've held through the bad times, though, are undoubtedly pleased.

Want to switch brokers, or need a new one? Check out our Broker Center.

Charles Schwab is aMotley Fool Stock Advisorrecommendation.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 500518, ~/Articles/ArticleHandler.aspx, 10/24/2016 5:23:40 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 2 days ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:00 PM
AMTD $37.08 Up +0.44 +1.20%
TD Ameritrade CAPS Rating: *****