E*TRADE Financial Earnings Cheat Sheet: Beats Estimates

S&P 500 (NYSE:SPY) component E*TRADE Financial Corporation (NASDAQ:ETFC) reported net income above Wall Street’s expectations for the third quarter. E*TRADE Financial 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 Third Quarter

Results: Net income for the investment brokerage rose to $70.7 million (24 cents per share) vs. $8.4 million (3 cents per share) in the same quarter a year earlier. This marks a substantial increase from the year earlier quarter.

Revenue: Revenue rose 3.6% to $507.3 million from the year earlier.

Actual vs. Wall St. Expectations: ETFC beat the mean analyst estimate of 19 cents per share. It fell short of the average revenue estimate of $520.6 million.

Quoting Management: “We are pleased with our third quarter results which – amid significant market volatility – demonstrated strength in our brokerage business, continued improvement in our loan portfolio and measurable progress against our strategic initiatives,” said Steven Freiberg, Chief Executive Officer of E*TRADE Financial Corporation. “The retail investor was highly engaged, particularly in early August when we successfully managed periods of record trade, call, online chat and login volumes. Over the course of the quarter, we benefited from growth in net new assets and accounts, supported by a stable customer retention rate. Delinquency trends in our loan portfolio continue to improve and our quarterly loan provision is down approximately 80 percent from its peak. Our solid execution continues to move the firm forward as we focus on delivering the best investing experience and creating franchise value.”

Key Stats:

The company beat estimates last quarter after being in line with expectations in the second quarter with net income of 16 cents per share.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 19 cents per share to 17 cents, potentially indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved down from 69 cents a share to 67 cents over the last ninety days.

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).

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

(Source: Xignite Financials)