TD Ameritrade Stock Poised To Break Out As Q3 Beats; Schwab Due Up – Investor's Business Daily

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After an industry-wide scramble to slash trading fees, TD Ameritrade (AMTD) reported third-quarter earnings that beat estimates, with  Charles Schwab (SCHW) coming up as well.

Interactive Brokers’ (IBKR) woes seem likely to continue when it reports after the close. E-Trade Financial (ETFC) reports on Thursday.

TD Ameritrade

Estimates: EPS is seen climbing 8% to 42 cents, as revenue increases 7% to $900 million.

Results: EPS of 44 cents on revenue of  $931 million. Client assets grew 20% to $882 billion, and new client assets totaled $22 billion. Average client trades per day rose 10% to approximately 510,000.

“Investors remained broadly engaged, with strong trading volumes despite persistent low market volatility,” said CEO Tim Hockey in a statement. “We’re seeing healthy trends in new account growth and asset inflows from both new and existing clients, and our institutional channel continues to break records for asset gathering.”

Stock: Shares rallied 2.6% to 45.95 in premarket trading, clearing a 45.47 buy point after forming a saucer-with-handle base. But early trades don’t always carry over to the regular session.

Charles Schwab

Estimates: Charles Schwab is expected see Q2 EPS jump 30% to 39 cents as revenue rises 17% to $2.13 billion.

Results: To be announced.

Stock: Shares edged up 0.2% to 43.00 early. Schwab cleared a 42.71 cup-with-handle buy point in late June.

Cut-throat competition in the online brokerage industry has driven trading fees down to $5-$7 from around $8-$10.

Schwab now charges $4.95 for stock and ETF trades, with Fidelity also cutting fees to that level. TD Ameritrade and E-Trade Financial, which rely more on online trading fees than Charles Schwab and Fidelity, have cut their per-trade rate to $6.95.

With rivals sharpening their tech focus, TD Ameritrade earlier this year announced plans to hike tech spending by 25%. It also has made user experience a focus as it hones its reputation for equity trading tools, mobile trading platforms and an options trading platform.

Interactive Brokers

Estimates: An 18% drop in EPS to 33  cents, with revenue dipping 3% to $357 million.

Results: To be announced after the close

Stock: Shares edged up 0.1% in premarket trading.

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