E*TRADE (ETFC) reported net income of $78 million, or 26 cents per share, excluding a $59 million pre-tax loss related to the early extinguishment of corporate debt. The 26 cents per share bested analysts estimates of 23 cents per share in the quarter. This is the fourth straight quarter E*TRADE has beat analysts estimates. Total revenue came in at $461 million compared to estimates of $444.6 million. Higher revenues and reduced provision for loan losses helped drive the quarterly upside surprise. The fall in interest income was one of the downsides of this fourth quarter report.
Total Daily Average Revenue Trades (DARTs) increased 5 percent year over year to 168,000. That was also an increase of 10 percent from DARTs in the third quarter. Total customer assets were $290.3 billion at the end of the fourth quarter, which is up 11 percent from last year. In the fourth quarter, E*TRADE reported net new brokerage accounts of 17,000 and an annualized attrition rate of 9.1 percent.
For the full year 2014, E*TRADE reported net new brokerage assets of $10.9 billion, a new company record. Total net revenue for the year was $1.8 billion. For the full year in 2014, DARTs were 168,000, up 11.3 percent for the year.
Shares of ETFC jumped by more than 10 percent following this earnings release.
Click here for E*TRADE’s full fourth quarter earnings report.