E*TRADE Financial Earnings: Here’s Why the Stock is Rising Now

E*TRADE Financial Corporation (NASDAQ:ETFC) delivered a profit 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 up 4.59%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

E*TRADE Financial Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 45.45% to $0.12 in the quarter versus EPS of $0.22 in the year-earlier quarter.

Revenue: Decreased 26.37% to $419.9 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: E*TRADE Financial Corporation reported adjusted EPS income of $0.12 per share. By that measure, the company met the mean analyst estimate of $0.12. It missed the average revenue estimate of $438.42 million.

Quoting Management: “The first quarter was encouraging, as we posted solid sequential growth in customer engagement, accounts, and assets,” said Paul Idzik, Chief Executive Officer. “With the advantage of a well-defined plan to de-risk and de-leverage, and solid execution against it, I am directing my efforts toward ensuring the core business is our dominant focus. I see a meaningful opportunity for E*TRADE – both in terms of driving a superior customer experience, and in creating value for shareholders – and I look forward to leading the Company through this phase of its growth.”

Key Stats (on next page)…

Revenue decreased 21.3% from $533.53 million in the previous quarter. EPS increased to $0.12 in the quarter versus EPS of $-0.65 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 $0.14 and has not changed. For the current year, the average estimate has moved up from a profit of $0.53 to a profit of $0.55 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

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