Yahoo Finance TD Ameritrade Holding Corporation (NASDAQ:AMTD): Has Recent Earnings Growth Beaten Long-Term Trend?
Assessing TD Ameritrade Holding Corporation’s (NASDAQ:AMTD) performance as a company requires looking at more than just a years’ earnings data. Below, I will run you through a simple sense check to build perspective on how TD Ameritrade Holding is doing by comparing its most recent earnings with its historical trend, in addition to the performance of its capital markets industry peers. View our latest analysis for TD Ameritrade Holding
How AMTD fared against its long-term earnings performance and its industry
For the most up-to-date info, I use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. This technique enables me to examine different companies in a uniform manner using the most relevant data points. For TD Ameritrade Holding, its most recent bottom-line (trailing twelve month) is US$1.01B, which compared to last year’s figure, has moved up by 18.13%. Given that these values are relatively myopic, I’ve estimated an annualized five-year value for AMTD’s net income, which stands at US$755.65M This shows that, generally, TD Ameritrade Holding has been able to steadily improve its bottom line over the last few years as well.
What’s the driver of this growth? Let’s see whether it is solely owing to an industry uplift, or if TD Ameritrade Holding has seen some company-specific growth. Over the past few years, TD Ameritrade Holding grew its bottom line faster than revenue by effectively controlling its costs. This brought about a margin expansion and profitability over time. Scanning growth from a sector-level, the US capital markets industry has been growing its average earnings by double-digit 14.43% in the previous twelve months, and 12.82% over the last five years. This suggests that any tailwind the industry is deriving benefit from, TD Ameritrade Holding is capable of leveraging this to its advantage.
What does this mean?
While past data is useful, it doesn’t tell the whole story. Positive growth and profitability are what investors like to see in a company’s track record, but how do we properly assess sustainability? You should continue to research TD Ameritrade Holding to get a better picture of the stock by looking at:
Future Outlook: What are well-informed industry analysts predicting for AMTD’s future growth? Take a look at our free research report of analyst consensus for AMTD’s outlook.
Financial Health: Is AMTD’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 March 2018. This may not be consistent with full year annual report figures.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
