E TRADE Financial Corporation (NASDAQ:ETFC) released its earnings report for the three months ended June 30 this afternoon after the market closed. The company revealed that it lost $0.19 per share in the second quarter of the year. Revenue in the period came to $440 million. On today’s market, stock in E TRADE Financial trended upward, closing the day at $13.62 per share.
In the run up to this afternoon’s earnings release, analysts following E TRADE Financial Corporation (NASDAQ:ETFC) were looking for earnings of 12 cents per share from the online brokerage. Revenues for the three month period were expected to come to $421 million by consensus. In the same quarter of last year the company managed to take in $452 million in revenue and turn that into 13 cents earnings per share.
E Trade valuation
Small to mid cap internet companies with established revenue streams are often the subject of debate and speculation by investors, but E TRADE Financial Corporation (NASDAQ:ETFC) is in the odd position of operating in a business traders know better than anything else.
The company has increased in price by more than 50% so far in 2013, and it’s valued at round 28 times 2013 earnings estimates. By consensus, analysts think E Trade will earn 49 cents per share this year, and 60 cents per share in 2014. Those estimates put the company at a pretty fair value for a mid cap growing internet stock.
E TRADE Financial Corporation (NASDAQ:ETFC) has, however, delivered negative earnings shocks for the last two years running. Investors will be hoping that 2013 allows it to beat that trend and get it back on track The company’s stock price has seen a 60% fall in the last five years of trading, and a 50% loss since it started trading in 1997.
E TRADE Financial Corporation (NASDAQ:ETFC) was one of the stocks that survived the Dot Com Bubble, though its share price has never recovered. The company’s executives will host a conference call at 5 pm to discuss this afternoon’s earnings release.