E*TRADE Reports Upbeat Q3 Earnings, Fueled by OptionsHouse Acquisition

Revenues, net income, and accounts were all higher across the board in Q3.

E*TRADE Financial Corporation (NASDAQ:ETFC) has released its financial results for Q3 2016, having reversed a recent decline in previous quarters en route to a rise across a number of key metrics, constituting one of its brightest quarters of 2016, per an E*TRADE earnings filing.

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During Q3 2016, E*TRADE reported a net income of $139 million and $0.51 per diluted share – this represented a rise of 4.5% QoQ from $133 million in Q2 2016 and $0.48 per diluted share. The figure does however represent a departure from last year’s net income over the same period, reflecting a drop of -9.2% YoY from $153 million and $0.51 in Q3 2015.

Looking further into the filing, E*TRADE’s financials managed to break out of a narrow band of consolidation that had enveloped key figures in 2016 on a QoQ basis – indeed, Q3 2016’s revenues rose for the second consecutive quarter to $486 million, up 3.0% QoQ from $472 million in Q2 2016.

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Unlike the case of its net income, the brokerage group secured a sizable growth in its revenues on a YoY basis, yielding an ascension of 12.8% YoY from $431 million in Q3 2015. One key driver of E*TRADE’s metrics has been the passage of its acquisition with OptionsHouse, which was previously acquired for $725 million back in July, ultimately helping spark customer accounts and assets.

Customer Activity

In terms of customer activity, E*TRADE saw its Daily Average Revenue Trades (DARTs) register a figure of 152,000, including 6,500 DARTs from the OptionsHouse acquisition during Q3 2016 – this was down 152,488 from Q2 2016, or less than -1.0% QoQ.

Finally, E*TRADE disclosed a total of 162,000 net new brokerage accounts, including 148,000 accounts from the OptionsHouse acquisition in Q3 2016, up substantially from just 35,752 accounts seen in Q2 2016.

At the time of writing, E*TRADE (NASDAQ:ETFC) shares are up 5.41% during US trading, having reached $27.76.

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