TD Ameritrade 3Q Results: Postgame Scorecard

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For the third quarter, TD Ameritrade (NASDAQ:AMTD) saw a decline in net income.

Earnings and Revenue The company experienced stronger-than-expected EPS and revenues. The company reported EPS of 28 cents a share versus the 26 cents a share estimate and revenues of $667 million versus the $660.8 million estimate. The estimates of 13 analysts ranged from profit of 24 cents to profit of 29 cents.

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The company's net income for the quarter was $153.8 million. This is a 2.3% decline from last year. Revenue fell 2.7% from $685.8 million in the same period last year.

Company Fundamental Trends This marks the second quarter in a row that the company's net income has fallen after profits tumbled 20.4% in the second quarter. Revenue declined last quarter after shrinking 6.2% to $674.6 million in the second quarter.

History Against Expectations The company topped expectations last quarter after falling short of forecasts in the second quarter. It reported net income of 25 cents versus a mean estimate of net income of 26 cents per share.

Official Comment: "TD Ameritrade continued its organic growth momentum despite the difficult operating environment. Year-to-date, we have gathered net new client assets of $30.7 billion, or an annualized growth rate of 11 percent, and we remain on track for a fourth consecutive year of double-digit organic client asset growth," said Fred Tomczyk, president and chief executive officer. "We remain focused on executing against our strategy and on managing what we can control in this difficult and uncertain environment. Our balance sheet is strong, and we remain well positioned to deal with today's uncertain macroeconomic environment."

Estimates provided by Zacks Investment Research and company fundamentals from Xignite Financials.