E-Trade Financial Earnings on Deck

S&P 500 (NYSE:SPY) component E-Trade Financial (NASDAQ:ETFC) will unveil its latest earnings on Thursday, October 18, 2012. E*TRADE Financial provides online brokerage and related products and services primarily to individual retail investors.

E-Trade Financial Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of 8 cents per share, a decline of 66.7% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 12 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 9 cents during the last month. For the year, analysts are projecting net income of 42 cents per share, a decline of 22.2% from last year.

Past Earnings Performance: The company is looking to beat analyst estimates for the third quarter in a row. Last quarter, it beat estimates with profit of 13 cents per share against the mean estimate of 11 cents. In the prior quarter, the company reported net income of 13 cents.

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A Look Back: In the second quarter, profit fell 16.1% to $39.5 million (14 cents a share) from $47.1 million (16 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 11.1% to $533.1 million from $599.7 million.

Stock Price Performance: Between July 19, 2012 and October 12, 2012, the stock price rose $1.18 (15.1%), from $7.82 to $9. The stock price saw one of its best stretches over the last year between July 25, 2012 and August 1, 2012, when shares rose for six straight days, increasing 7.9% (+57 cents) over that span. It saw one of its worst periods between November 8, 2011 and November 17, 2011 when shares fell for eight straight days, dropping 24.5% (-$2.66) over that span.

Wall St. Revenue Expectations: On average, analysts predict $440 million in revenue this quarter, a decline of 13.3% from the year-ago quarter. Analysts are forecasting total revenue of $1.82 billion for the year, a decline of 10.8% from last year’s revenue of $2.04 billion.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 8.2% in the fourth quarter of the last fiscal year and 8.1% in first quarter before falling again in the second quarter.

Analyst Ratings: There are mostly holds on the stock with seven of 10 analysts surveyed giving that rating.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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