E*Trade swings to 2nd-qtr loss, warns on next qtr
Tue Jul 22, 2008 4:09pm EDT
NEW YORK, July 22 (Reuters) - E*Trade Financial Corp (ETFC.O: Quote, Profile, Research, Stock Buzz) reported a bigger-than-expected second-quarter loss on Tuesday, and warned about more deficits in the next quarter, as credit-related troubles continued to weigh.
The U.S. online brokerage posted a net loss of $94.6 million, or 19 cents a share, in the period ended June 30, compared with a profit of $159.1 million, or 37 cents per share in the same period a year earlier.
E*Trade said it liquidated about 65 percent of the $330 million in preferred equity held in troubled mortgage lenders Fannie Mae (FNM.N: Quote, Profile, Research, Stock Buzz) and Freddie Mac (FRE.N: Quote, Profile, Research, Stock Buzz), which will result in a $83 million pretax loss in the third quarter.
On average, analysts polled by Reuters Estimates expected a second-quarter loss of 14 cents a share. (Reporting by Jonathan Spicer; editing by Jeffrey Benkoe)
reuters.com |
