TD Ameritrade (NASDAQ: AMTD) is set to report earnings tomorrow morning.  What is interesting is that Joe Moglia’s discount broker is down today, while Charles Schwab (NASDAQ: SCHW) is trading higher after its earnings today.

Schwab actually rallied after its earnings weren’t indicative of any significant problems in the online discount brokerage space.  Its operating profit was actually up 36% and EPS was $0.26 (matched estimates at Reuters and $0.01 under First Call estimates).  Revenues around $1.3 Billion were also in line with estimates, and a breakdown is as follows: $242< trading revenue, $628M asset management and administration, and $441M net interest.  Its assets stayed flat sequentially at $1.44 Trillion.

What is interesting is that Schwab left the door open to acquisitions in brokerage accounts or in 401K retirement operations and the fee structure is still somewhat open as well.  Schwab’s market cap today is roughly $26.8 Billion.

TD Ameritrade is expected to post $0.39 EPS on $622.6 million in revenues for the last quarter and we;ll get more details in the conference call tomorrow.  What is interesting is that Ameritrade actually raised its guidance in mid-December and shares closed at $19.40 that day.  Shares are at $19.00 today.

With about 90 minutes to the close, AMTD shares are down almost 2% at $18.97.  Its 52-week trading range is $13.82 to $21.31.  Its current market cap is roughly $11.3 Billion.

E*Trade (NASDAQ:ETFC) is set to report its earnings later this month, and you can throw your arms up in the air over how that one will look.  This one is now the dog of the business, and even after it has sold off assets (and hopefully liabilities) and even after raising cash and getting rid of the CEO it is still the most troubled and at risk of the large online brokers.  At that point we’re supposed to get its restructuring business plan.

Jon C. Ogg
January 16, 2008

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