Tom Reese/Paul Rubillo, Dividend.com
TD Ameritrade (AMTD) shares are down nearly 5% so far today, after the company's profits fell 23% to $184.4 million, or 31 cents per share, in the quarter that ended Dec. 31, down from $240.8 million, or 40 cents per share, a year ago.
In response to the weak economic environment, the online broker said it plans to cut $60 million from its expenses over the eighteen months, but the company did not immediately say where those cuts would be made.
Management cut 2009 EPS guidance to between 90 cents and $1.15 per share, below its previous range of $1.10-$1.42 per share in fiscal 2009. The company recently announced it would be acquiring Thinkorswim Group Inc. (SWIM) for $606 million.
The Bottom Line
Shares of AMTD fell 30% in 2008. The stock has long-term technical support in the $5 area. If the stock can stabilize and begin to move higher, overhead resistance would come in the $14-15 area. We do not currently rate this non-dividend paying stock at this moment.
TD Ameritrade (AMTD) does not currently pay a dividend.
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