E*TRADE Stumbles On Earnings (ETFC)

By Jon C. Ogg Published Jan 25, 4:38PM EST

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E*TRADE Financial Corporation (NASDAQ: ETFC) is trading lower in the after-hours session after reporting a loss for the quarter. The online broker lost $6 million or -$0.02 EPS versus $0.24 EPS one quarter earlier. Revenue was $475 million, down from both the prior quarter’s $507 million and down from $518 million a year earlier. Thomson Reuters was calling for earnings of $0.20 EPS on nearly $489 million in revenues. E*TRADE also booked a provision for loan losses of $123 million after items and took $10.8 million in charges against a class action settlement.

Trading metrics (DARTs) are lower as well per these figures: Daily Average Revenue Trades were 140,000, down 15 percent from the prior quarter and down 7 percent from fourth quarter 2010 . Also noted were lower new net brokerage accounts and lower net new brokerage assets.

E*TRADE closed lower by almost 2% at $9.36 after the FOMC signaled low rates for as long as the eye can see and now shares are down another 2.8% to $9.10 in the after-hours session. E*TRADE’s 52-week range is $7.42 to $18.13.

JON C. OGG

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About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.