What You Need to Know for E*Trade’s Second Quarter Earnings

S&P 500 (NYSE:SPY) component E*Trade Financial Corp (NASDAQ:ETFC) will unveil its latest earnings on Wednesday, July 20, 2011. E*TRADE Financial Corp provides online brokerage and related products and services primarily to individual retail investors.

E*Trade Financial Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 16 cents per share, a rise of 33.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 15 cents. Between one and three months ago, the average estimate moved up, but has dropped from 17 cents during the last month. For the year, analysts are projecting profit of 68 cents per share, a swing from net loss of 13 cents last year.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the first quarter, it reported net income of 16 cents per share against a mean estimate of profit of 12 cents per share. In the fourth quarter of the last fiscal year, it missed forecasts by 15 cents.

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Wall St. Revenue Expectations: On average, analysts predict $519.3 million in revenue this quarter, a rise of 41% 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 10 of 14 analysts surveyed maintaining a hold rating.

Key Stats:

Revenue has fallen in the past four quarters. Revenue declined 1.8% to $620.5 million in first quarter. The figure fell 6.2% in the fourth quarter of the last fiscal year from the year earlier, dropped 19.5% in third quarter of the last fiscal year from the year-ago quarter and 21.4% in the second 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 April 18, 2011 to July 14, 2011, the stock price had fallen $2.74 (-17.5%) from $15.70 to $12.96. The stock price saw one of its best stretches over the last year between March 17, 2011 and March 24, 2011 when shares rose for six-straight days, rising 8.3% (+$1.24) 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 $3.04 (-19%) year to date.

(Source: Xignite Financials)

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