E*TRADE Financial Corp Fourth Quarter Earnings Coming Soon

S&P 500 (NYSE:SPY) component E*TRADE Financial Corporation (NASDAQ:ETFC) will unveil its latest earnings on Wednesday, January 25, 2012. E*TRADE Financial provides online brokerage and related products and services primarily to individual retail investors.

E*TRADE Financial Corporation Earnings Preview Cheat Sheet.

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 20 cents per share, a swing from a loss of 11 cents in the year earlier quarter. During the past three months, the average estimate has moved up from 15 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 20 cents during the last month. For the year, analysts are projecting net income of 69 cents per share, a swing from net loss of 13 cents last year.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the third quarter, it reported profit of 24 cents per share versus a mean estimate of 19 cents. Two quarters ago, it reported net income of 16 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $488.9 million in revenue this quarter, a rise of 50.8% from the year ago quarter. Analysts are forecasting total revenue of $2.05 billion for the year, a rise of 57.7% from last year’s revenue of $1.3 billion.

Analyst Ratings: Analysts seem relatively indifferent about E*TRADE with nine of 11 analysts surveyed maintaining a hold rating.

A Look Back: In the third quarter, profit rose 741.2% to $70.7 million (24 cents a share) from $8.4 million (3 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 2.6% to $588.6 million from $573.9 million.

Key Stats:

A year-over-year revenue increase in the third quarter snapped a streak of three consecutive quarters of revenue declines. Revenue fell 4.2% in the second quarter, 1.8% in the first quarter and 6.2% in the fourth quarter of the last fiscal year.

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).

Stock Price Performance: During December 19, 2011 to January 19, 2012, the stock price had risen $2.13 (28.4%) from $7.49 to $9.62. The stock price saw one of its best stretches over the last year between July 18, 2011 and July 25, 2011 when shares rose for six-straight days, rising 32.4% (+$4.04) 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, falling 24.5% (-$2.66) over that span.

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

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