=E*TRADE (ETFC) reported earnings on Thur 17 Oct 2019 (b/o)

E*TRADE beats by $0.06, beats on revs

Reports Q3 (Sep) earnings of $1.08 per share, excluding non-recurring items, $0.06 better than the S&P Capital IQ Consensus of $1.02; revenues rose 6.5% year/year to $767 mln vs the $742.83 mln S&P Capital IQ Consensus.

• Revenue by segment:
  • Interest Income $521 mln
  • Interest Expense ($66 mln)
  • Commissions $122 mln
  • Fees & service charges $163 mln (approx 21%)
• Operating margin of 50 percent; adjusted operating margin of 48 percent.
• Average interest-earning assets of $55.4 billion; net interest margin of 328 basis points.
• Daily Average Revenue Trades (DARTs) of 267,000, including 36 percent in derivatives, a Company record;
• derivative DARTs of 95,000 Average and end of period margin receivables of $9.9 billion
• Net new accounts of 47,000 Net new retail and advisor services assets of $2.8 billion

"The commission changes over the past few weeks have caused a meaningful shift for the industry-making it even more crucial to deliver a cutting-edge and easy-to-use experience to investors and traders alike. As a digital-first company, backed by one of the most sophisticated customer support teams in the industry, we will leverage our advantage to grow and take share, especially as price is removed as a point of competitive differentiation. Our business is well positioned for the long-term, and we will remain dynamic, optimizing our model in a manner that best delivers long-term value for shareholders."