Earnings Briefing - E*TRADE Financial

LONDON, February 5, 2015 /PRNewswire/ --

Investor-Edge.com has issued free earnings review on E*TRADE Financial Corp. (NASDAQ: ETFC). On January 22, 2015, the company reported its financial results for Q4 FY14 and full year FY14 (period ended December 31, 2014). Click on http://get.investor-edge.com/pdf/?c=ETRADE%20Financial&d=05-Feb-2015&s=ETFC to read our free earnings review on E*TRADE Financial Corp. (E*TRADE). During Q4 FY14 and FY14, the company recorded net income of $41 million, or $0.14 per diluted share, and $293 million, or $1.00 per diluted share, respectively. CEO of E*TRADE, Paul Idzik, said that it was a momentous year for the company. E*TRADE's unwavering commitment to its customers produced tremendous results as the company's brokerage business reached multi-year highs in customer trades and net new brokerage accounts, and all-time records in net new brokerage assets, account retention, margin receivables, and managed assets, he informed. Our free coverage report can be accessed at:

http://get.investor-edge.com/pdf/?c=ETRADE%20Financial&d=05-Feb-2015&s=ETFC

Earnings Overview 

During Q4 FY14, E*TRADE's total net revenue increased to $461 million from $446 million in Q4 FY13. The company's total net revenues during Q4 FY14 outperformed Bloomberg analysts' forecast of $449 million. Further, E*TRADE's net operating interest income increased to $283 million in Q4 FY14 from $257 million in Q4 FY13. However, in Q4 FY14, the company's total non-interest income decreased to $178 million from $189 million in Q4 FY13. Free research on ETFC can be downloaded in PDF format at:

http://get.investor-edge.com/pdf/?c=ETRADE%20Financial&d=05-Feb-2015&s=ETFC

E*Trade's Daily Average Revenue Trades (DARTs) grew 5% Y-o-Y to 168,000 in Q4 FY14. During Q4 FY14, the company added 17,000 new brokerage accounts and ended the quarter with 3.1 million brokerage accounts. The company also recorded annualized brokerage accounts' attrition rate of 9.1% in Q4 FY14. During the reported quarter, E*TRADE added $3.5 billion in net new brokerage assets to end the period with $290 billion in total customer assets compared with $261 billion in total customer assets in Q4 FY13.

In Q4 FY14, E*TRADE's total operating expenses declined to $294 million from $295 million in Q4 FY13. During Q4 FY14, the company's net income fell by $17 million, or $0.06 per diluted share, from $58 million, or $0.20 per diluted share, in Q4 FY13. Analysts from Bloomberg had expected net income of $37 million, or $0.13 per diluted share, in Q4 FY14.

During the quarter, the Company announced that it has received regulatory approval to operate E*TRADE Bank (a subsidiary of E*TRADE Financial) at a Tier 1 leverage ratio of 9.0% and move broker-dealers (E*TRADE Securities and E*TRADE Clearing) out from under E*TRADE Bank. Sign up and read the free analyst's notes on ETFC at:

http://get.investor-edge.com/pdf/?c=ETRADE%20Financial&d=05-Feb-2015&s=ETFC

For FY14, E*TRADE's total net revenues improved to $1.81 billion from $1.72 billion in FY13. The company's total net revenues during FY14 outperformed Bloomberg analysts' forecast of $1.80 billion. The company's net operating interest income increased to $1,088 million in FY14 from $982 million in FY13. However, E*TRADE's non-interest income stood at $726 million, below $741 million as reported in FY13.

E*TRADE's DARTs for FY14 came in at 168,000 compared to 151,000 in FY13. During FY14, the company added 146,000 net new brokerage accounts. Moreover, the company's annualized brokerage account attrition rate was 8.7% in FY14 compared to 8.8% in FY13. The company also added a record $10.9 billion of net new brokerage assets in FY14.

In FY14, the company's total operating expenses fell to $1.15 billion from $1.28 billion in FY13. E*TRADE's FY14 net income surged by $207 million, or $0.71 per diluted share, from $86 million, or $0.29 per diluted share, in FY13. Analysts at Bloomberg had expected net income of $290 million, or $0.98 per diluted share, in FY14. Visit Investor-Edge and access the latest research on ETFC at:

http://get.investor-edge.com/pdf/?c=ETRADE%20Financial&d=05-Feb-2015&s=ETFC

As of December 31, 2014, the company's consolidated and E*TRADE bank's Tier 1 leverage ratio stood at 8.1% and 10.6%, respectively. E*TRADE's progress continues with approvals from regulators - enabling the company to operate the bank at a lower Tier 1 leverage ratio, remove broker-dealers from under the bank, and distribute their excess capital to the parent, stated Mr. Idzik. All are important votes of confidence, and underscore the company's noteworthy progress, he added.

Stock Performance 

On the day following the earnings release, January 23, 2015, E*TRADE's stock rallied 8.41% to end the session at $24.56. Since then, the stock has moved both ways with gains outperforming losses. On the last close, Wednesday, February 04, 2015, the company's shares finished 1.95% higher at $25.30, after vacillating between $24.81 and $25.60. A total of 5.56 million shares were traded which was above its three months average volume of 2.87 million shares. Over the previous three trading sessions and over the past one month, the company's shares have surged 9.76% and 5.37%, respectively. Further, the stock has rallied 30.48% in the last one year. Shares in E*TRADE are trading above their 50-day and 200-day moving averages of $23.30 and $21.99, respectively. Furthermore, the stock traded at a PE ratio of 22.99 and has a Relative Strength Index (RSI) of 59.98.

Sneak Peek to Corporate Insider Trading 

In the last one month, E*TRADE has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on ETFC is available at:

http://get.investor-edge.com/pdf/?c=ETRADE%20Financial&d=05-Feb-2015&s=ETFC

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