With the surge in stock market last year, retail investors are
getting back into trading, resulting in record trading volumes for
About the Company
Headquartered in New York,
Financial Corporation (
and related products and services to individual investors and stock
The Company provides these services to customers both online and
through their network of customer service representatives and
financial consultants. The company also operates a bank for
deposits generated through its brokerage business.
ETFC was incorporated in 1982 and had its IPO in 1996.
Excellent Fourth Quarter Earnings
On January 23, E*TRADE reported its fourth quarter results. Net
income for the quarter was $0.20 per share, in- line with the Zacks
Consensus Estimate. Results were a significant improvement over net
loss of $0.65 per share in the prior-year quarter.
Daily average revenue trades (DARTs) for the quarter were 160,000--
highest in over two years. Average margin loan balance was
five-year high at $6.4 billion, up 8% sequentially and 10%
ETFC got 22,000 net new brokerage accounts during the quarter,
taking the total to 95,000 added during the full year. Annual
attrition fell to a record low 8.8% in 2013.
Bank and consolidated Tier 1 leverage ratios were 9.5% and 6.7% as
of the end of fourth quarter.
Positive Earnings Estimates Revisions
After excellent results, analysts have raised their estimates for
the company. Zacks Consensus Estimates for the current and next
year are now $0.91 and $1.16 per share up from $0.87 and $1.08 per
share respectively, 60 days ago.
Rising estimates sent ETFC to a Zacks Rank #1 (Strong Buy) last
Solid Industry Outlook
Zacks industry rank for "Investment Brokers" is currently 34 out of
265 (top 13%).
The Bottom Line
ETFC is a Zacks Rank#1 (Strong Buy) stock. Further top Zacks
Industry Rank also indicates strong chances of outperformance in
the short- to medium- term.
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E TRADE FINL CP (ETFC): Free Stock Analysis
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