ETrade Has Second Quarter Profit
MENLO PARK, Calif. (AP) _ Online brokerage ETrade Group Inc. reported an operating profit in its fiscal second quarter even though it had a net loss due to merger costs and other charges.
The company recorded a $1.3 million profit, or less than a penny a share, from ongoing operations in the three months ended March 31, versus a $13.3 million operating loss in the same period last year.
Analysts surveyed by First Call/Thomson Financial had forecast a net loss of 16 cents per share.
Including charges and other costs related primarily to mergers, ETrade registered a net loss of $23.2 million, or 8 cents per share, during in the quarter. The company reported net earnings of $8.5 million, or 3 cents per share, in the same period in 1999.
ETrade benefited from a wave of individual investors opening online accounts to buy and sell stocks. The company opened 603,000 new accounts during the quarter, bringing its total customer base to 2.6 million. At the same point last year, ETrade had just under 1 million accounts.
Customers also traded substantially more stocks during the quarter. ETrade’s trading volume more than tripled from a year ago to an average of 229,000 shares per day.
The increased volume translated into more commissions for the brokerage. ETrade’s second quarter revenue was $407 million, up 152 percent from $162 million a year ago.
Shares of ETrade fell 68 3/4 cents to $22.75 in trading on the Nasdaq Stock Market.