April 21, 2009 / 12:11 PM / 9 years ago

CORRECTED - UPDATE 1-TD Ameritrade profit drop meets expectations

* Q2 earnings 23 cents per share, meets Street

* Revenue $525.5 million, down 16 percent

* Shares little changed premarket (Corrects year-earlier earnings figures in paragraph 5 to $186.7 million, or 31 cents per share, from $427.6 million, or 72 cents per share; Incorporates earlier correction to percentage change in trading revenue and overall revenue)

NEW YORK, April 21 (Reuters) - TD Ameritrade Holding Corp (AMTD.O) reported a profit drop in the latest quarter, meeting expectations, as the online broker was hurt by low interest rates but helped by new assets and trading volumes.

The second-biggest U.S. discount brokerage, which needs small investors to stay active in the markets, attracted some $6 billion in net new assets last quarter, suggesting it still managed to snap up investment advisers and clients amid the global recession.

TD Ameritrade’s trading revenue rose 8 percent from a year ago. Its shares were little changed before the open of markets.

The company, which three months ago lowered its 2009 earnings forecast, repeated that forecast but noted “we still face some challenging headwinds.”

TD Ameritrade earned $132.0 million, or 23 cents per share in its fiscal second-quarter, down from $186.7 million, or 31 cents per share in the same period a year earlier.

Revenue fell 16 percent to $525.5 million. On average, analysts expected the Omaha, Nebraska-based company to earn 23 cents per share on $514.5 million in revenue. (Reporting by Jonathan Spicer, Editing by Maureen Bavdek)

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