Internet stock trading house E*Trade Group Inc has posted first-quarter numbers that edged out Wall Street expectations, thanks to a surge in new business. Net income for the quarter soared 117% to $4.9m on revenue that rose 104% to $51.1m. Earnings per share rose 71% to $0.12, after the effect of a $2.8m acquisition charge stemming from the purchase of the OptionsLink unit from Hambrecht & Quist in November (CI No 3,288). Net of the charge, earnings were $0.16 per share, two cents better than the First Call consensus. E*Trade says it added 100,000 new accounts during the quarter ended December 31, including the OptionsLink business. Its current total stands at about 325,000, up 188% year-over-year. Assets in customer accounts rose to $7.8bn, up 140% from the first quarter of last year, but up only 2% from the end of the previous quarter. Total transactions for the quarter were 1.575 million. The company shows $7.9m in cash on its balance sheet. E*Trade shares rose $2.375 to close at $25.3125.
