E-Trade Trading Down 1% After Reporting Results

E-Trade ETFC reports Q2 EPS 12c versus consensus of 11c loss. Reports Q2 revenue $534M versus consensus of $299.38 million. “The second quarter marked an important milestone for E*TRADE as we reported our first quarterly profit in three years,” said Steven Freiberg, Chief Executive Officer of E*TRADE Financial Corporation. “Our results were supported by strength in our brokerage business, including growth in DARTs, new accounts, and margin receivables; continued improvement in loan performance trends; prudent expense management; and effective balance sheet strategies in an environment of declining interest rates.” Freiberg continued, “We are proud of our second quarter performance and remain focused on positioning the Company for sustainable profitability and growth. At the same time, our significant progress increases our flexibility to invest in products, services, and technologies that should enhance our customer franchise and allow us to better realize growth opportunities to drive shareholder value.” E*TRADE reported DARTs of 170,000 during the quarter, a 10 percent increase from the prior quarter and a 16 percent decrease versus the same quarter a year ago. At quarter end, the Company reported 4.2 million customer accounts, which included 2.6 million brokerage accounts. Net new brokerage accounts were 18,000 during the quarter, compared with 2,000 in the prior quarter. Excluding 3,000 accounts closed in connection with the Company’s international restructuring, the Company added 21,000 net new brokerage accounts during the quarter.