TD Ameritrade Posts Big Gains in Net Income, Revenue for Q4, FY 2011

Company reports record net new client assets of $41 billion during fiscal year; plans further stock buybacks.

TD Ameritrade Holding Corp. announced  Tuesday that in its 2011 fiscal year ended Sept. 30 it had net income of $637.7 million, or $1.11/diluted share, compared to $592.1 million in net income in the prior year, or $1/diluted share. Revenue also rose in FY 2011, to $2.762 billion from $2.560 billion in FY 2010.

In its fourth quarter, AMTD’s net income rose 44% to $163.7 million, or $0.29 cents/diluted share, compared to $113.9 million in net income, or $0.20/share, in 2010’s fourth quarter. Revenue rose 16% to $703.5 million, compared to $608.8 million in 2010.

The earnings fell short of FactSet’s consensus analysts’ projections of $0.31/share; AMTD’s stock was down $0.44 as of 3:20 p.m. EDT, to $15.73.

In its earnings release, the company noted that it had record net new client assets of $41.5 billion for the year, record average client trades/day of 399,000, and total client assets of $379 billion. It also touted its execution for the first time of more than 100 million client trades in a single fiscal year and that 51% of its  $2.8 billion in net FY revenue were asset-based.

Fred Tomczyk, president and CEO (left), said in a statement that the company “gathered a record $41 billion in net new assets, including a record $12 billion in the fourth quarter alone, an annual growth rate of 12 percent.” TD Ameritrade also released an updated Outlook Statement in which it said it expects earnings of $1 to $1.35 per share for its 2012 fiscal year. Referring to next year, Tomczyk said in a statement that “All indicators are telling us that this uncertain economic environment is here to stay for the next year or two, and as a management team we are planning accordingly.”

Over the last 12 months, the company said has used $395 million to repurchase 23.3 million shares, or 4% of its outstanding stock, at an average price of$16.96 per share, and that its board has authorized repurchases of an addition 30 million shares. As of the end of FY 2011, the company had 576 million shares outstanding, down from 591 million shares at FY 2010’s close.

In its 8K filing with the SEC, TD Ameritrade also declared a 20% increase in its quarterly cash dividend to $0.06/share, payable Nov. 15, 2011 to shareholders of record as of Nov. 1, 2011.

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