Shares of online broker E*Trade Financial Corp. (Nasdaq: ETFC) fell Thursday, a day after the firmâ€™s first-quarter earnings report showed a profit that beat Wall Street expectations but also included a lower outlook for the full fiscal year.
The firmâ€™s shares shed 93 cents, or 4.20 percent, to reach $21.18 in afternoon trading on the Nasdaq Stock Market.
The firm lowered its 2007 earnings projections to a range of $1.55 to $1.77 per share. In January the company said it expected an annual profit between $1.65 to $1.80 a share.
A survey of analysts conducted by Thomson Financial expected E-Trade to earn $1.62 for the entire year.
The retail investor is just not trading as much right now, Chief Operating Officer Jarrett Lilien told analysts. We still think it'll be a good year for trading. We're just not as optimistic as when we made our forecast last year.
E-Trade beat analystsâ€™ expectations for the quarter, however. Net income rose 19 percent to $169.4 million, or 39 cents a share, compared to $142.5 million, or 33 cents a share a year ago. Analysts expected 38 cents per share in the first quarter.
Total net revenue for the quarter rose to $645.0 million from $598.3 million in the year ago period.
The company also announced plans for a $250 million stock repurchase plan. It already has $34 million remaining in its active program announced in December 2004.