E*Trade Financial Swings to Quarterly Profit, Divests Unit
E*Trade Financial reported today that its Q3 net revenue was nearly $417 million, which didn't quite hit the average analyst projection of $419 million.
It was also well below the $490 million the online brokerage reported in the same period the previous year. Net profit, however, was firmly in the black at $47.4 million ($0.16 per diluted share), a significant improvement over the $28.6 million ($0.10) the company lost in Q3 2012. That $0.16 EPS met analyst expectations.
In terms of operating metrics, E*Trade's Q3 daily average revenue trades -- a key figure in the industry -- advanced 13% over that one-year span of time to 145,150. As of the end of the quarter, the company had almost 4.6 million customer accounts in total.
E*Trade also announced that it has reached an agreement to sell G1 Execution Services, its market maker unit. The buyer is an affiliate of Susquehanna International Group, and the price is $75 million. As part of the deal, E*Trade committed to route 70% of its customer equity order flow to GI over the coming five years. The sale is expected to close in three to six months, pending the necessary regulatory approvals.
The article E*Trade Financial Swings to Quarterly Profit, Divests Unit originally appeared on Fool.com.Fool contributor Eric Volkman has no position in E*Trade Financial. Nor does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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