E*Trade reported earnings of $35 million, or 12 cents a share, for the June-ending quarter vs. a loss of $48 million, or 25 cents a share, in the March quarter and a loss of $143 million, or $2.16 a share, in the year-ago equivalent period. Total revenue fell 14% from the last year's quarter to $534 million, while the provision for loan losses also fell 38% from the prior quarter to $168 million. Still Wall Street expectations for E*Trade were widely surpassed. The average analyst estimate called for E*Trade to post a loss of 11 cents a share in the June-ending quarter, according to Thomson Reuters. E*Trade's daily average revenue trades, or DARTs rose 10% from the prior quarter, and 16% from the second quarter of 2009 to 170,000. The brief spike in trading around the "flash crash" in early May contributed to the higher trading activity for E*Trade, as well as its rivals Charles Schwab ( SCHW) and TD Ameritrade ( AMTD) . "The second quarter marked an important milestone for E*Trade as we reported our first quarterly profit in three years," said Steven Freiberg, E*Trade's chief executive, in a statement. "Our results were supported by strength in our brokerage business, including growth in DARTs, new accounts, and margin receivables; continued improvement in loan performance trends; prudent expense management; and effective balance sheet strategies in an environment of declining interest rates."
|E*Trade CEO Steven Freiberg|