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What's in Store for E*TRADE (ETFC) in Q3 Earnings Report?
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E*TRADE Financial Corporation is scheduled to report third-quarter 2017 results on Oct 19. While the top line is expected to grow year over year, earning per share will likely remain flat.
In the last reported quarter, E*TRADE Financial reported a positive earnings surprise of 8.3%, supported by increased net revenues and benefit from provisions. Further, the quarter witnessed an increase in daily average revenue trades along with growth in customer accounts. However, the positives were partially offset by higher expenses.
Notably, E*TRADE Financial delivered positive earnings surprises in each of the trailing four quarters, with an average beat of 17%.
The stock has gained 26.3% year to date, outperforming the industry’s rally of nearly 7%.
E*TRADE Financial Corporation Price and EPS Surprise
Will the upcoming earnings release give a boost to E*TRADE stock? A lot depends on whether the firm posts a beat for the fifth straight quarter. However, our quantitative model does not conclusively predict a beat. Here’s why:
E*TRADE doesn’t have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The Earnings ESP for E*TRADE is 0.00%.
Zacks Rank: E*TRADE currently carries a Zacks Rank #2 (Buy).
Also, activities of E*TRADE during the quarter were inadequate to win analysts’ confidence. As a result, the Zacks Consensus Estimate for the to-be-reported quarter remained stable over the last seven days.
Factors That Might Influence Q3 Results
Margin Pressure Likely to Ease: The June 2017 rate hike is expected to make a full-quarter impact on net interest margin. However, a flat yield curve during the quarter might curb this improvement to some extent.
Interest Expense Savings: The company’s expenses are expected to reduce on the back of its restructuring moves to lower debt level.
Revenues Likely to Improve: Continued momentum in investment banking business is likely to support E*TRADE’s top line. Also, the revenue synergies from OptionHouse acquisition is expected to be partly reflected in the upcoming results. However, owing to low volatility in the bond and equity markets during the quarter, trading revenues are likely to remain low.
Notably, the Zacks Consensus Estimate for sales is projected to be $596.3 million, up 22.7% year over year.
Stocks That Warrant a Look
Here are some stocks worth considering, as they have the right combination of elements to post an earnings beat this quarter.
T. Rowe Price Group, Inc.’s (TROW - Free Report) Earnings ESP is +3.25% and it carries a Zacks Rank of 2. The company is expected to release results on Oct 26.
Lazard Ltd.(LAZ - Free Report) has an Earnings ESP of +1.39% and a Zacks Rank of 3. It is scheduled to report third-quarter results on Oct 26.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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What's in Store for E*TRADE (ETFC) in Q3 Earnings Report?
E*TRADE Financial Corporation is scheduled to report third-quarter 2017 results on Oct 19. While the top line is expected to grow year over year, earning per share will likely remain flat.
In the last reported quarter, E*TRADE Financial reported a positive earnings surprise of 8.3%, supported by increased net revenues and benefit from provisions. Further, the quarter witnessed an increase in daily average revenue trades along with growth in customer accounts. However, the positives were partially offset by higher expenses.
Notably, E*TRADE Financial delivered positive earnings surprises in each of the trailing four quarters, with an average beat of 17%.
The stock has gained 26.3% year to date, outperforming the industry’s rally of nearly 7%.
E*TRADE Financial Corporation Price and EPS Surprise
E*TRADE Financial Corporation Price and EPS Surprise | E*TRADE Financial Corporation Quote
Earnings Whispers
Will the upcoming earnings release give a boost to E*TRADE stock? A lot depends on whether the firm posts a beat for the fifth straight quarter. However, our quantitative model does not conclusively predict a beat. Here’s why:
E*TRADE doesn’t have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — to increase the odds of an earnings beat.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks ESP: The Earnings ESP for E*TRADE is 0.00%.
Zacks Rank: E*TRADE currently carries a Zacks Rank #2 (Buy).
Also, activities of E*TRADE during the quarter were inadequate to win analysts’ confidence. As a result, the Zacks Consensus Estimate for the to-be-reported quarter remained stable over the last seven days.
Factors That Might Influence Q3 Results
Margin Pressure Likely to Ease: The June 2017 rate hike is expected to make a full-quarter impact on net interest margin. However, a flat yield curve during the quarter might curb this improvement to some extent.
Interest Expense Savings: The company’s expenses are expected to reduce on the back of its restructuring moves to lower debt level.
Revenues Likely to Improve: Continued momentum in investment banking business is likely to support E*TRADE’s top line. Also, the revenue synergies from OptionHouse acquisition is expected to be partly reflected in the upcoming results. However, owing to low volatility in the bond and equity markets during the quarter, trading revenues are likely to remain low.
Notably, the Zacks Consensus Estimate for sales is projected to be $596.3 million, up 22.7% year over year.
Stocks That Warrant a Look
Here are some stocks worth considering, as they have the right combination of elements to post an earnings beat this quarter.
TD Ameritrade Holding Corporation (AMTD - Free Report) is slated to report third-quarter results on Oct 24. It has an Earnings ESP of +0.82% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
T. Rowe Price Group, Inc.’s (TROW - Free Report) Earnings ESP is +3.25% and it carries a Zacks Rank of 2. The company is expected to release results on Oct 26.
Lazard Ltd. (LAZ - Free Report) has an Earnings ESP of +1.39% and a Zacks Rank of 3. It is scheduled to report third-quarter results on Oct 26.
The Hottest Tech Mega-Trend of All
Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>