Why E*TRADE Financial Corp (NASDAQ: ETFC) stock is declining

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E*TRADE Financial Corp (NASDAQ: ETFC) stock fell over 2.1% on 24th January, 2020 (As of 10:45 am GMT-5; Source: Google finance) after the company posted mixed results for the fourth quarter of FY 19. E-Trade has earned $172 million, in the fourth quarter, compared to $270 million, in the year-ago quarter. For FY 19, the company has reported the net income of $955 million, net income available to common shareholders of $915 million , diluted earnings per common share of $3.85, which includes net losses of $44 million, or $0.18 per diluted share, related to losses from balance sheet repositioning, the benefit to provision for loan losses, and other items. In FY 19, the company’s total net revenue of $2.9 billion. The average interest-earning assets was of $58.2 billion, net interest margin was of 318 basis points,  DARTs of 291,000 and derivative DARTs of 98,000, net new accounts were of 304,000 and net new retail and advisor services assets were of $14.8 billion.

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Meanwhile, the company has increased its award-winning retail platform and #1-rated Corporate Services solution, expanded the Advisor Services offering, and posted  the best year ever for customer trading, growth in customer cash, and stock plan implementation.

Moreover, for the fourth quarter 2019, the average interest-earning assets were of $55.2 billion, net interest margin were of 301 basis points, the daily Average Revenue Trades (DARTs) were of 331,000 and derivative DARTs of 111,000, both Company records. The average and end-of-period margin receivables were of $9.7 billion. Net new accounts were of 52,000 and the net new retail and advisor services assets were of $5.7 billion

ETFC in the fourth quarter of FY 19 has reported the adjusted earnings per share of 76 cents, missing the analysts’ estimates for the adjusted earnings per share of 81 cents, according to analysts polled by FactSet. The company had reported the adjusted revenue of $679 million in the fourth quarter of FY 19, beating the analysts’ estimates for revenue of $671 million.

Additionally, the Company has also declared a quarterly cash dividend of $0.14 per share on the Company’s outstanding shares of common stock. The dividend will be payable on March 2, 2020, to shareholders of record as of the close of business on February 25, 2020. Overall, the company has returned the Capital return to shareholders (3) of $208 million, including share repurchases of $176 million and dividends of $32 million. In FY 19, the company has returned the capital to shareholders (3) of $1.2 billion, including share repurchases of $1.1 billion and dividends of $135 million.

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