E*Trade up 19% in first quarter

E*Trade Financial reported a 19% increase in first quarter profit on growth in client assets. The New York-based online discount brokerage reported net income of $169.4 million, or 39 cents per share, compared to $142.5 million, or 33 cents per share during the year-ago period. Revenues for the quarter were a record $645 million, up 8% from $598 million during the first quarter of 2006. Analysts surveyed by Thomson Financial forecasted profit of 38 cents on revenues of $672.6 million. Retail client assets increased 4% to $201 billion, compared to the year-ago quarter. In addition the company authorized a $250 million share buyback plan. The company has $34 million remaining in its active program originally announced in December 2004. However, E*Trade is reducing its 2007 earnings outlook to $1.55 to $1.75 a share, down from a December prediction of $1.65 to $1.80. "Although the broad based markets have been strong, the recent volatility in the macroeconomic environment has affected retail customer behavior and engagement levels," said Mitchell H. Caplan, E*Trade chief executive, in a statement.