E-Trade Financial Corp. (ETFC) returned to profitability, announcing a profitable second quarter on Thursday after the bell.
The online broker posted gains of $35 million or 12 cents per share for the quarter, compared with a year-ago loss of $143 million or $2.16 a share, adjusting for a 1-for-10 reverse stock split.
Revenue slipped during the second quarter, falling 14% to $534 million, down from $621 million, one year ago.
The results shocked the Street as analysts had expected a loss of 11 cents a share on revenue of $299 million.
"The second quarter marked an important milestone for E*TRADE as we reported our first quarterly profit in three years," said Steven Freiberg, chief executive officer. "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."
Shares of E-Trade rose 57 cents or 4.5% in Thursday’s session, closing the day at $13.35. The stock is up 93 cents, nearly 7.0% in after-hours trading.
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