E*TRADE Financial (ETFC) reported earnings on Thur 19 Oct 2017 (a/h)

** charts after earnings **

 

E*TRADE beats by $0.04, reports revs in-line; Acquires Trust Company of America

• Reports Q3 (Sep) earnings of $0.55 per share, excluding non-recurring items, $0.04 better than the Capital IQ Consensus of $0.51; revenues rose 23.3% year/year to $599 mln vs the $598.96 mln Capital IQ Consensus.
  • Daily Average Revenue Trades (DARTs) of 205,763, down 1.2% yr/yr; 32 percent in derivatives
• E*TRADE Financial Corporation also announced today that it has entered into a definitive agreement to acquire Trust Company of America (TCA), a leading provider of technology solutions and custody services to the independent Registered Investment Adviser (RIA) market, for $275 million in cash. E*TRADE expects the transaction to be neutral to earnings in 2018 and accretive in 2019 when full run-rate synergies are expected. The Company intends to fund the transaction through issuance of non-cumulative perpetual preferred stock. The transaction is expected to close in the second quarter of 2018, subject to customary closing conditions and regulatory approvals.