E*Trade Posts Nickel Beat

The company records a charge to get out of proprietary trading.
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Online brokerage

E*Trade Financial

(ET) - Get Report

reported a 17% decline in second-quarter profits because of a charge it's taking for shutting down a business.

In the quarter, the brokerage earned $101.6 million, or 27 cents a share, compared with $123 million, or 31 cents a share. The company said it was taking a $6.7 million after-tax charge because of its decision to "exit the proprietary and hybrid trading business."

On an operating basis, E*Trade said it earned 29 cents a share. Using that basis, the brokerage exceeded the Thomson Financial consensus estimate of 24 cents a share.

Revenues at E*Trade rose 3% to $391 million, which was below the consensus estimate of $409 million.

The company said it expects to earn 96 cents to $1.06 a share in the full year. The consensus forecast had E*Trade earning 99 cents a share, with an upper estimate of $1.05.