Research Desk Line-up: TD Ameritrade Post Earnings Coverage
LONDON, UK / ACCESSWIRE / October 26, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on ETRADE Financial Corp. (NASDAQ: ETFC), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=ETFC, following the Company's announcement of its financial performance on October 19, 2017, for the third quarter fiscal 2017 (Q3 FY17). The New York-based Company's net revenues grew on a year-over-over basis, which outperformed market expectations. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Get more of our free earnings reports coverage from other constituents of the Investment Brokerage - National industry. Pro-TD has currently selected TD Ameritrade Holding Corporation (NASDAQ: AMTD) for due-diligence and potential coverage as the Company released on October 24, 2017, its financial results for FY17. Register for a free membership today, and be among the early birds that get access to our report on TD Ameritrade when we publish it.
At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on ETFC; also brushing on AMTD. With the links below you can directly download the report of your stock of interest free of charge at:
http://protraderdaily.com/optin/?symbol=ETFC
http://protraderdaily.com/optin/?symbol=AMTD
Earnings Reviewed
In the quarter ended September 30, 2017, E*TRADE's total net revenues came in at $599 million compared to $486 million in the year-ago same quarter. Total revenue numbers for the reported quarter outperformed market expectations of $598.8 million. The Company attributed this year-over-year revenue growth to primarily driven by an increase of $35 million in net interest income.
During Q3 FY17, E*TRADE's net interest income rose 16% y-o-y to $391 million from $287 million in Q3 FY16. The rise in quarterly net interest income is primarily due to rise interest-earning assets by $2.9 billion. Furthermore, the Company reported total non-interest income of $208 million in Q3 FY17 compared to $199 million in the prior year's same quarter.
The online brokerage Company reported net income of $147 million, or $0.49 per diluted share, in Q3 FY17, compared to $139 million, or $0.51 per diluted share, in Q3 FY16. Additionally, Q3 FY17 adjusted net income was $0.55 per diluted, as the reported net income included net expense of $16 million, or $0.06 per diluted share, related to losses on early extinguishment of debt and other items. Meanwhile, Wall Street had expected the Company to report net income of $0.51 per diluted share in Q3 FY17.
Performance Metrics
E*TRADE's net interest margin grew in the reported quarter to 285 basis points in Q3 FY17 from 259 basis points in Q3 FY16. In Q3 FY17, average interest-earning assets grew to $54.84 billion from $44.49 billion in the last year's corresponding quarter. Adjusted operating margin for the reported period came in at 42% versus 34% in Q3 FY16. The Company reported non-interest expense of $405 million, in Q3 FY17, which was above $323 million reported in the year-ago same period.
At the end of Q3 FY17, the Company's Tier 1 leverage ratio was calculated at 7.2% compared to7.3% as on the close of books at the end of Q3 FY16. Common Equity Tier 1 capital ratio increased to 35.2% during Q3 FY17, from 34.0%, in Q3 FY16. Furthermore, the Company made net recoveries of $7 million in the reported quarter compared to $4 million in Q3 FY16.
The Company ended Q3 FY17 with 3.59 million brokerage accounts, an increase of 4% from the prior quarter number of 3.44 million. Meanwhile, the Company's daily average revenue trades (DART) surged 35% to 205,763 in Q3 FY17 from 151,905 in the year-ago same quarter.
Accounts and Balance Sheet
At the end of September quarter, E*TRADE had 5.37 million customer accounts, up 3% from 5.22 million in the year-ago same quarter. The Company's total customer assets stood at $365.3 billion as on September 30, 2017, up 19% from $306.8 billion as on September 30, 2016. Additionally, Brokerage-related cash increased 8% y-o-y to $52.3 billion in Q3 FY17 from $48.3 billion in Q3 FY16.
In Q3 FY17, E*TRADE's common equity book value per share grew 7% to $23.10 y-o-y from $21.63 reported in the year-ago same quarter. Additionally, the Company's tangible common equity book value per share rose to $15.51 in Q3 FY17 from $13.82 in Q3 FY16.
Share Repurchase
In Q3 FY17, the Company repurchased 4.6 million shares for $187 million at an average price of $40.64 and is set to complete the $1 billion program by the end of 2018.
Stock Performance
At the closing bell, on Wednesday, October 25, 2017, ETRADE Financial's stock marginally fell 0.46%, ending the trading session at $43.42. A total volume of 2.34 million shares have exchanged hands, which was higher than the 3-month average volume of 2.29 million shares. The Company's stock price skyrocketed 6.63% in the last three months, 24.56% in the past six months, and 54.57% in the previous twelve months. Moreover, the stock surged 25.31% since the start of the year. The stock is trading at a PE ratio of 20.28 and currently has a market cap of $12.06 billion.
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