After three long years of deficits, subprime lending fears, CEO shuffling, and death pool wagering, E*TRADE
The discount broker managed to squeeze out a profit of $0.12 a share, surprising analysts that were braced for yet another loss out of the web-savvy trade platform.
It's a bold time for a turnaround. Revenue actually dipped sequentially and year-over-year, and the industry is going through a challenging period where brokers need to waive money market management fees, offer free ETFs, and scale back their commission schedules to attract and retain accounts.
However, delinquencies are also down at E*TRADE, providing the best hope yet that the company is distancing itself from its banking miscues.
Larger rivals TD AMERITRADE
The welcome news sent the shares higher in afterhours trading last night, breaking through the $14.20 price where E*TRADE began trading after a 1-for-10 reverse split last month.
Investors are watching E*TRADE since its prolific reverse. If it holds up well in the coming months, it will make it that much more convincing for trucker YRC Worldwide
Success stories among reverse splits have been rare since travel portal Priceline.com
Will profitability make E*TRADE cocky enough to put an end to sector consolidation chatter? It can happen. Former Citigroup
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Longtime Fool contributor Rick Munarriz has been trading exclusively through discount brokers since 1990 but he does not own shares in any of the companies in this story. He is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early. The Fool has a disclosure policy.