E*TRADE Financial Earnings: A Dive Into the Numbers

E*TRADE Financial Corporation (NASDAQ:ETFC) had a loss and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 4.48%.

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E*TRADE Financial Corporation Earnings Cheat Sheet

Results: Net loss of $186.1 million (loss of 65 cents per diluted share) in the quarter versus a net loss of $6.35 million in the year-earlier quarter.

Revenue: Decreased 15.74% to $467.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: E*TRADE Financial Corporation reported adjusted net loss of 0 cent per share. By that measure, the company met the mean analyst estimate of $0. It missed the average revenue estimate of $476.53 million.

Quoting Management: “While 2012 was characterized by a retrenchment of the retail investor, our brokerage business remained resilient,” said Matthew Audette, CFO. “Our net new assets and accounts surpassed 2011 levels as we continued to grow the franchise and made solid early progress in the retirement and investing segment…

…Additionally, we strengthened the financial position of the firm by executing on several elements of our long-term Strategic and Capital Plan. We deleveraged our balance sheet, improved our Bank capital ratios, refinanced $1.3 billion in expensive corporate debt and identified over $100 million of cost reductions. We look forward to building on this momentum during 2013.”

Key Stats:

Revenue decreased 17.3% from $565.53 million in the previous quarter. Net income increased to $0 in the quarter versus a net loss of $28.63 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.12 to a profit $0.1. For the current year, the average estimate has moved down from a profit of $0.18 to a loss of $0 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)