E*TRADE Financial Earnings: Here’s Why Investors are Happy Now

E*TRADE Financial Corporation (NASDAQ:ETFC) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 3.16%.

E*TRADE Financial Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 50% to $0.21 in the quarter versus EPS of $0.14 in the year-earlier quarter.

Revenue: Decreased 17.46% to $440 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: E*TRADE Financial Corporation reported adjusted EPS income of $0.21 per share. By that measure, the company beat the mean analyst estimate of $0.12. It beat the average revenue estimate of $419.79 million.

Quoting Management: The second quarter was reflective of how well-geared the E*TRADE model is for improvements in the operating environment, as our normalized income demonstrated marked growth from prior periods. Our customers remained engaged, and we continued to grow assets and accounts, while delivering record account retention, said Paul Idzik, Chief Executive Officer. I am pleased with the teams solid performance, as we sharpened our focus on delivering an exceptional customer experience, while identifying opportunities for efficiency. Additionally, our decision to exit the market making business underscores Managements intensifying focus on our core customer franchise and the desire to concentrate our efforts on areas that directly support the core of the Company. As we go forward, I am exceedingly confident in our prospects for our customers, our business, and our shareholders.

Key Stats (on next page)…

Revenue decreased 9.1% from $484.07 million in the previous quarter. EPS increased 75% from $0.12 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.12 and has not changed. For the current year, the average estimate has moved up from a profit of $0.48 to a profit of $0.49 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)