E*TRADE (ETFC) reported earnings on Wednesday after the bell that matched analysts estimates on the bottom line. Analysts were expecting 16 cents per share form E*TRADE, and that is exactly what the company reported. In the same quarter a year ago, E*TRADE reported a loss of 10 cents per share. The company did narrowly miss estimates on the top line revenue number. Analysts projected revenue numbers of $419.9 million, but the company reported revenue of $417 million. Revenue a year ago was actually $490 million for E*TRADE. The biggest reason for the decline in revenue was lower non-interest income. A year ago non-interest income was $229.2 million, this year the number was just $176 million.
E*TRADE reported DARTs of 145,150 during the third quarter. That number was down three percent from the second quarter, but it was up 13 percent from the same period a year ago. As of the end of the third quarter, E*TRADE had almost 4.6 million customer accounts. E*TRADE ended the quarter with $241 billion in total customer assets. The average commission per trade was $11.15 during the quarter, which was five cents higher than the second quarter.
The big announcement to come out of the earnings call was the online broker’s announcement that it will sell its market making unit to Susquehanna International Group for $75 million. The sale is expected to close in three to six months.
Investors weren’t thrilled with the third quarter report from E*TRADE. Shares of the stock fell a little more than three percent during Thursday’s trading.
For the full press release from E*TRADE click here.