How Much Is E*Trade Really Worth?
Ameritrade (AMTD) and E*TRADE (ETFC) report earnings yesterday. AMTD reported earnings of $.26 before the bell beating analyst estimates by $.04. The online broker said Q4 profits declined by 8.9% but trading activity reached the highest quarterly level ever. • Average client trades per day surged to 411,000 in Q4, up 35% YoY and up 5% sequentially. • Client assets increased to $302 billion, up 8% from $278 billion a year ago. • Net new client assets $5.4 billion. • TD Ameritrade posted a profit of $156.7 million or $.26 cents a share below the $172 billion reported a year earlier. • Revenues increased by 1.3% to $657.9 million. FY 2010 guidance and valuation for AMTD: The average AMTD analyst estimate for 2010 EPS is currently $1.26, in the middle of the company provided range. Analysts have the revenue estimates at $2.68 billion for 2010 also in the middle of the range provided by company management. Our proprietary YCHARTS valuation model has AMTD valued at just under $20 a share so
