E*TRADE Financial Corporation Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component E*TRADE Financial Corporation (NASDAQ:ETFC) will unveil its latest earnings on Wednesday, October 19, 2011. 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 18 cents per share, a rise of sixfold from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting net income of 67 cents per share versus net loss of 13 cents last year.

Past Earnings Performance: The company fell in line with estimates last quarter after topping forecasts the quarter before. After coming in above the mean estimate by 4 cents in the first quarter, the company fell in line with expecations by reporting profit of 16 cents per share last quarter.

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Wall St. Revenue Expectations: On average, analysts predict $520.6 million in revenue this quarter, a rise of 54.3% from the year ago quarter. Analysts are forecasting total revenue of $2.08 billion for the year, a rise of 60% from last year’s revenue of $1.3 billion.

Analyst Ratings: Analysts seem relatively indifferent about E*TRADE with nine of 13 analysts surveyed maintaining a hold rating.

A Look Back: In the second quarter, profit rose 34.3% to $47.1 million (16 cents a share) from $35.1 million (12 cents a share) the year earlier, meeting analyst expectations. Revenue fell 4.2% to $599.7 million from $625.9 million.

Key Stats:

Revenue has fallen in the past four quarters. Revenue declined 1.8% in the first quarter from the year earlier, dropped 6.2% in fourth quarter of the last fiscal year from the year-ago quarter and 19.5% in the third 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 July 20, 2011 to October 13, 2011, the stock price had fallen $5.01 (-34%) from $14.72 to $9.71. 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 April 6, 2011 and April 14, 2011 when shares fell for seven-straight days, falling 3.5% (-57 cents) over that span. Shares are down $6.29 (-39.3%) year to date.

(Source: Xignite Financials)

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