E-Trade posts $71M 3Q profit with tax benefit

AP News
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Posted: Oct 19, 2011 4:52 PM
E-Trade posts $71M 3Q profit with tax benefit

Online broker E-Trade Financial Corp. says its third-quarter net income jumped eightfold from a year earlier, boosted by a hefty tax benefit and increased trading by its customers during a summer of high volatility in the stock markets.

The New York-based company reported net income of $70.7 million, or 24 cents per share, up from $8.4 million, or 3 cents per share, in the same period a year earlier.

E-Trade got a big boost during the quarter from a $62 million tax benefit from liquidating an international subsidiary.

Revenue was $507 million, up 4 percent from $489 million in the third quarter of 2010, but shy of the average forecast from analysts for $511 million.