E*TRADE Stumbles On Earnings (ETFC)

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