Research Desk Line-up: Houlihan Lokey Post Earnings Coverage

LONDON, UK / ACCESSWIRE / July 27, 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 disclosure of its second quarter fiscal 2017 on July 20, 2017. The online brokerage outperformed top- and bottom-line expectations and posted its highest ever DARTS and Derivative Mix. 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 Houlihan Lokey, Inc. (NYSE: HLI) for due-diligence and potential coverage as the Company reported on July 25, 2017, its financial results for Q1 FY18 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Houlihan Lokey 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 HLI. 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=HLI

Earnings Reviewed

For its second quarter ended June 30, 2017, E*TRADE's total net revenue was $577 million, advancing 21.73% compared to revenue of $474 million in Q2 2016. The Company's revenue numbers exceeded analysts' estimates of $554.3 million.

E*TRADE's non-interest expense was $359 million for Q2 2017, up $17 million sequentially, inclusive of $18 million in unique costs. E*TRADE's operating margin was 55% and adjusted operating margin was 38% for Q2 2017 compared to operating margin of 41% and adjusted operating margin of 38% in Q1 2017 and 45% and 38% in the prior year's same quarter. The Company's effective tax rate for the reported quarter was 39%, which is in-line with E*TRADE's expectations for the next 2 quarters.

During Q2 2017, E*TRADE reported net income of $193 million, or $0.70 diluted earnings per common share, compared to net income of $145 million, or $0.48 diluted earnings per common share, in Q1 2017 and net income of $133 million, or $0.48 diluted earnings per common share, in Q2 2016. The Company's reported quarter earnings include a net benefit of $50 million, or $0.18 per diluted share, related to a benefit to provision for loan losses. On an adjusted basis, E*TRADE posted earnings of $0.52 per share which also exceeded Wall Street's estimates of $0.48 per share.

Key Metrics

During Q2 2017, E*TRADE's net interest income increased 12% to $356 million as the Company's average interest-earning assets grew by $3.2 billion and net interest margin increased 11 basis points to 274 basis points. The increase was driven by the full quarter impact of the March Federal Reserve's hike, higher customer margin balances, and strong securities lending activity.

For Q2 2017, E*TRADE's Commission revenue was $105 million, falling 17% on a sequential basis, attributed to the full quarter impact of the Company's pricing reductions. E*TRADE's commission per trade for Q2 2017 was $8.02. The Company's Fees and Service charges increased $12 million on a q-o-q basis to $98 million. This was driven by higher order flow revenue related to a higher mix of options trades and higher asset-based fees on larger mutual fund balances as well as increased rate on off-balance sheet deposits.

During Q2 2017, E*TRADE's yield on third-party customer cash averaged 92 basis points, up from 58 basis points in Q1 2017, incorporating the benefit of the June Fed's hike.

For Q2 2017, E*TRADE's Daily Average Revenue Trades (DARTs) totaled 208,210, the Company's best quarter on record, up 37% on a y-o-y basis. The Company's derivative mix improved to 32% of trades in the reported quarter, its highest mark ever.

E*TRADE's customer margin balances ended the quarter up 12% at $8.2 billion, tying the Company's previous record. E*TRADE's net new brokerage assets came in at $2.6 billion representing its highest Q2 on record, bringing the Company's year-to-date growth rate to 4.9%, approximately 125 basis points higher than the same period last year. E*TRADE's managed assets at the end of Q2 2017 totaled $4.6 billion, reflecting an increase of 18% on an YTD basis.

During Q2 2017, E*TRADE added 41,000 net new brokerage accounts, bringing the Company's totaled to 99,000 in 2017, which is nearly 60% higher than the same period last year and reflects a year-to-date growth rate of 5.7%, at the top end of the Company's target range.

Stock Performance

ETRADE Financial's share price finished yesterday's trading session at $41.11, dropping 1.93%. A total volume of 3.18 million shares has exchanged hands, which was higher than the 3-month average volume of 2.55 million shares. The Company's stock price skyrocketed 15.80% in the last three months, 11.14% in the past six months, and 62.88% in the previous twelve months. Additionally, the stock surged 18.64% since the start of the year. Shares of the Company have a PE ratio of 21.40 and currently have a market cap of $11.32 billion.

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SOURCE: Pro-Trader Daily