Investors Cheer TD Ameritrade's Move To Buy Scottrade

TD Ameritrade Holding Corporation AMTD disclosed its fourth quarter results and forecast for the fiscal year 2017, while confirming a big acquisition.

TD Ameritrade reported net income of $185 million, or $0.35 a share, on net revenue of $829 million for the fourth quarter. Street analysts' expected EPS of $0.38 on revenue of $837.43 million.

Last year, the company earned a profit of $240 million, or $0.45 per share, on revenue of $838 million.

Moving ahead, the company expects EPS of $1.50-$1.80 a share for the fiscal year 2017. The mid-point of the guidance is below than the Street estimates of $1.68 a share.

TD Ameritrade's EVP and CFO, Steve Boyle, commented, "Looking ahead, we expect trading and organic growth to drive fiscal 2017 results, and we'll remain disciplined on managing expenses while generating savings that can be invested in initiatives to fuel future growth."

Separately, TD disclosed its deal to buy Scottrade Financial Services for $4 billion in cash and stock. The company sees savings of about $450 million from the annual expense synergies apart from $300 million more additional long-term opportunities.

The stock traded up by 1.6 percent to $37.69 in pre-market trading.