E TRADE Financial Earnings: Stock Flying on Solid Financials

S&P 500 (NYSE:SPY) component E*TRADE Financial Corporation (NASDAQ:ETFC) swung to a profit in the second quarter and beat Wall Street’s expectations in the process. E*TRADE Financial Corp provides online brokerage and related products and services primarily to individual retail investors.

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E*TRADE Financial Earnings Cheat Sheet for the Second Quarter

Results: Swung to a profit of $45.2 million (16 cents/diluted share) in the quarter. The investment brokerage had a net loss of $143.2 million or a loss of $2.20 per share in the year earlier quarter.

Revenue: Stayed flat at $536.7 million YoY.

Actual vs. Wall St. Expectations: ETFC beat the mean analyst estimate of 11 cents/share. Estimates ranged from 6 cents per share to 14 cents per share.

Quoting Management: “E*TRADE is off to a terrific start in 2011,” said Steven Freiberg, Chief Executive Officer of E*TRADE Financial Corporation. “Our first quarter results benefited from strength in our brokerage franchise, growth in both interest and non-interest revenue, positive loan performance trends and ongoing expense management.”

Competitors to Watch: Charles Schwab Corp. (NYSE:SCHW), TD AMERITRADE Holding Corporation (NASDAQ:AMTD), optionsXpress Holdings, Inc. (NASDAQ:OXPS), Raymond James Financial, Inc. (NYSE:RJF), and Interactive Brokers Group, Inc. (NASDAQ:IBKR).

Today’s Performance: Shares of ETFC are trading 3.2 percent.

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