E*TRADE Financial (ETFC) Tops Q4 EPS by 3c, Revenues Miss

E*TRADE Financial (NASDAQ: ETFC) reported Q4 EPS of $1.06, $0.03 better than the analyst estimate of $1.03. Revenue for the quarter came in at $735 million versus the consensus estimate of $746.37 million.

• Net income of $270 million or $1.06 per diluted share, which includes a net benefit of $9 million, or $0.03 per diluted share, related to the benefit to provision for loan losses
• Total net revenue of $735 million, a Company record(1)
• Operating margin of 50 percent; adjusted operating margin of 48 percent(2)
• Return on common equity of 19 percent; adjusted return on common equity of 18 percent(3)
• Average interest-earning assets of $60.1 billion; net interest margin of 320 basis points
• Daily Average Revenue Trades (DARTs) of 296,000, including derivative DARTs of 93,000
• Margin receivables of $9.6 billion; average margin receivables of $11.1 billion
• Net new brokerage accounts of 947,000(4); excluding the acquisition of Capital One brokerage accounts, net new brokerage accounts of 35,000
• Net new brokerage assets of $19.1 billion(4); excluding the acquisition of Capital One brokerage accounts, net new brokerage assets of $4.0 billion
• Total customer assets of $414.1 billion
• Utilized $501 million to repurchase 10.3 million shares at an average price of $48.53

"This was a year of records for E*TRADE. We generated our highest net revenue, operating margin, and earnings, while capitalizing on an unprecedented operating environment to produce record organic business growth. We drove our strongest growth in net new brokerage accounts and assets, while we grew our stock plan channel at our best rate ever. We gained a foothold in advisor solutions, and significantly expanded the scale of our brokerage through opportunistic acquisitions. We accomplished all of this while returning more than $1 billion to our shareholders via share repurchases and our first ever quarterly dividend,” said Karl Roessner, Chief Executive Officer. “Our team did not yield in their drive to further enhance our world-class platforms, while delivering rock-solid service amid a period of pronounced market volatility. During 2019, we will continue to surprise and delight our trading customers, grow our institutional channels, and expand our wealth management offering—all while generating value for our shareholders."

For earnings history and earnings-related data on E*TRADE Financial (ETFC) click here.

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