E*TRADE Financial (NASDAQ:ETFC) Posts Quarterly Earnings Results, Beats Expectations By $0.07 EPS

E*TRADE Financial (NASDAQ:ETFC) posted its earnings results on Thursday. The financial services provider reported $1.08 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $1.01 by $0.07, RTT News reports. E*TRADE Financial had a net margin of 36.75% and a return on equity of 18.44%. The business had revenue of $767.00 million for the quarter, compared to analyst estimates of $742.83 million. During the same quarter in the prior year, the firm earned $1.00 EPS. The firm’s quarterly revenue was up 6.5% compared to the same quarter last year.

NASDAQ:ETFC traded down $0.28 during mid-day trading on Thursday, reaching $38.73. 1,876,208 shares of the company were exchanged, compared to its average volume of 2,876,149. E*TRADE Financial has a 12 month low of $34.68 and a 12 month high of $54.44. The company has a fifty day moving average of $41.54 and a 200 day moving average of $45.34. The company has a quick ratio of 0.27, a current ratio of 0.27 and a debt-to-equity ratio of 0.28. The stock has a market cap of $9.62 billion, a PE ratio of 9.96, a PEG ratio of 1.34 and a beta of 1.21.

The business also recently disclosed a quarterly dividend, which will be paid on Friday, November 15th. Shareholders of record on Friday, November 8th will be issued a dividend of $0.14 per share. This represents a $0.56 dividend on an annualized basis and a yield of 1.45%. E*TRADE Financial’s dividend payout ratio is currently 14.40%.

E*TRADE Financial announced that its Board of Directors has approved a share repurchase program on Thursday, July 18th that authorizes the company to buyback $1.50 billion in outstanding shares. This buyback authorization authorizes the financial services provider to reacquire up to 12.9% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s leadership believes its shares are undervalued.

In other news, Director Rodger A. Lawson sold 5,109 shares of the firm’s stock in a transaction dated Friday, September 13th. The shares were sold at an average price of $45.18, for a total value of $230,824.62. Following the transaction, the director now owns 113,739 shares of the company’s stock, valued at approximately $5,138,728.02. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, EVP Michael John Curcio sold 53,584 shares of the firm’s stock in a transaction dated Friday, September 13th. The shares were sold at an average price of $45.18, for a total transaction of $2,420,925.12. Following the completion of the transaction, the executive vice president now directly owns 149,159 shares in the company, valued at approximately $6,739,003.62. The disclosure for this sale can be found here. 0.20% of the stock is owned by corporate insiders.

Several research firms have recently weighed in on ETFC. Keefe, Bruyette & Woods lowered shares of E*TRADE Financial from an “outperform” rating to a “market perform” rating and lowered their target price for the stock from $55.00 to $45.50 in a report on Monday, September 9th. Barclays lowered shares of E*TRADE Financial from an “overweight” rating to an “underweight” rating and decreased their price objective for the stock from $56.00 to $31.00 in a report on Wednesday, October 2nd. ValuEngine lowered shares of E*TRADE Financial from a “sell” rating to a “strong sell” rating in a report on Tuesday, October 1st. Deutsche Bank decreased their price objective on shares of E*TRADE Financial from $45.00 to $43.00 and set a “hold” rating on the stock in a report on Wednesday, August 21st. Finally, Wells Fargo & Co lowered shares of E*TRADE Financial from an “outperform” rating to a “market perform” rating and decreased their price objective for the stock from $55.00 to $37.00 in a report on Thursday, October 3rd. Two research analysts have rated the stock with a sell rating, six have issued a hold rating and eight have issued a buy rating to the stock. E*TRADE Financial has a consensus rating of “Hold” and a consensus price target of $48.04.

About E*TRADE Financial

E*TRADE Financial Corporation, a financial services company, provides brokerage and related products and services for traders, investors, stock plan administrators and participants, and registered investment advisors (RIAs). It also offers investor-focused banking products, primarily sweep deposits to customers; clearing and settlement services; Federal Deposit Insurance Corporation insurance services; custody solutions to RIAs; other banking and cash management services; software and services for managing equity compensation plans to its corporate clients; retail futures transaction services; and investment advisory services.

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Earnings History for E*TRADE Financial (NASDAQ:ETFC)

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