E*TRADE Financial Corporation (ETFC) reported a profit of 21 cents per share in the second quarter. Analysts had expected the company to report a profit of just 13 cents per share. Including one-time charges E*TRADE actually reported a loss of 19 cents per share. Total net revenue for the quarter was $440 million. That far outpaced analysts estimates for revenue of $422 million.
The online broker reported Daily Average Revenue Trades (DARTs) of 150,000. That was a one percent increase from the previous quarter and an eight percent increases from the same quarter a year ago. Loan portfolio contractions and improved delinquencies were also a boost to the company in the second quarter.
The biggest news from this quarter’s report is the company’s decision to exit the struggling market making business. Many analysts and investors have been hoping for this move, and the stock responded very positively to this news. This exit is the reason for the one-time charges in the second quarter.
CEO Paul Idzik said, “Our customers remain engaged and we continue to grow assets and accounts, while delivering record account retention.” The company ended the quarter with $220 billion in total customer assets, up from $193 billion a year ago. Brokerage account attrition matched a record low for the company at 8.4 percent during the quarter.
Shares of ETFC jumped nearly eight percent in Thursday trading as investors cheered the quarterly results. The stock is now at its highest level since September 2011.
For more information click here for the full press release from E*TRADE on this earnings report.