E*TRADE Earnings Cheat Sheet: Rise in Profit

S&P 500 (NYSE:SPY) component E*TRADE Financial Corporation (NASDAQ:ETFC) reported its results for the second quarter. 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: Net income for the investment brokerage rose to $47.1 million (16 cents per share) vs. $35.1 million (12 cents per share) in the same quarter a year earlier. This marks a rise of 34.3% from the year earlier quarter.

Revenue: Revenue fell 3.1% to $517.6 million last quarter.

Actual vs. Wall St. Expectations: ETFC fell in line with the mean analyst estimate of 16 cents per share. Analysts were expecting revenue of $519.3 million.

Quoting Management: “We are pleased with our second quarter performance, which reflected continued solid progress across the firm,” said Steven Freiberg, Chief Executive Officer of E*TRADE Financial Corporation. “While our brokerage results were affected by an industry-wide decline in trading activity, we have continued to experience positive momentum in a number of metrics, including the generation of new accounts and assets, the growth of margin receivables, and improvements in customer retention. Our Corporate Services group continues to build momentum, signing more than 30 new client contracts during the quarter and strengthening an important channel for future retail brokerage account growth. Within the loan portfolio, we experienced a continuation of improving delinquency trends, and continue to focus on risk mitigation activities to stem future losses. Collectively, our successes this quarter allow us to maintain focus on initiatives that we believe will further enhance the customer experience and create value for shareholder

Key Stats:

The company fell in line with estimates last quarter after beating forecasts in the previous quarter with net income of 16 cents versus a mean estimate of net income of 12 cents per share.

Competitors to Watch: TD Ameritrade Holding Corp. (NASDAQ:AMTD), The Charles Schwab Corp. (NYSE:SCHW), optionsXpress Hldgs., Inc. (NASDAQ:OXPS), Interactive Brokers Group, Inc. (NASDAQ:IBKR), Morgan Stanley (NYSE:MS), FXCM Inc (NYSE:FXCM), Gain Capital Holdings Inc (NYSE:GCAP), TradeStation Group, Inc. (NASDAQ:TRAD), SWS Group, Inc. (NYSE:SWS), and Raymond James Financial, Inc. (NYSE:RJF).

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(Source: Xignite Financials)