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E*Trade beats 2Q estimates

Tiffany Kary ZDNet.co.uk

Published: 13 Apr 2000 09:50 BST

E*Trade Group said Wednesday it handily topped First Call consensus estimates and reached break-even on an operating basis. First Call expected a loss of 16 cents a share.

The company's total net loss as reported for the second quarter of fiscal 2000 was $23.2m (£14.6m), or 8 cents a share. For its ongoing operations, E*Trade reported a net profit of $1.3m, or a break-even amount per share, as compared to a net loss of $13.3m, or 5 cents a share a year earlier, and a net loss of $34.9m or 12 cents a share in the previous quarter.

Shares closed at 23 7/16 Tuesday, far below their 52-week high of 72 1/4. The company beatestimates for its first quarter, along with other Web brokers DLJdirect and Knight-Trimark.

For the quarter ended March 31, net revenue grew to $407m, up 152 percent from the same period a year ago, and up 52 percent from the first quarter of fiscal 2000.

The company said it attracted 603,000 net new accounts, bringing its total to 2.6m, compared to 967,000 a year ago. Average transactions per day increased to 229,000, up 226 percent from 70,000 a year ago, and up 73 percent from 133,000 in the first fiscal quarter of 2000.

Charges recognized outside ongoing operations, which brought loss to 8 cents a share, included expenses for merger related activity and amortization of goodwill of $21.8m after tax, or 7 cents a share. E*Trade said it plans to periodically liquidate portions of its strategic investment portfolio and realised an after-tax gain in the current quarter of $7.8m or 3 cents a share. The company also recorded a loss of $10.5m or 4 cents a share, after tax, on its participation in venture funds.

E*Trade also competes with TD Waterhouse, Charles Schwab and Datek Online.

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