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E*Trade (NYSE: ET) rose 33 U.S. cents to $7.88 in morning trading Wednesday, after the online brokerage reported first-quarter results that were in line with analyst expectations, and announced an expanded alliance with Target stores.
The Menlo Park, California-based online brokerage said income from ongoing operations totaled $868,000, or breakeven per share, in the quarter ended March 31st, compared with a loss of $672,000, also breakeven, in the same period last year. Revenue slipped to $330 million from $417 million.
E*Trade reported a net loss of $7.2 million, or 2 cents per share, compared with a loss of $25.5 million, or 9 cents, a year earlier.
The company said it added 166,112 new brokerage and banking accounts during the quarter, bringing the total to more than 3.7 million at quarter's end. A year earlier, E*Trade had 2.6 million accounts.
"Despite the current economic slowdown, E*Trade continued to demonstrate the
strength and flexibility 
of our business model," said chairman and chief
executive officer Christos M. Cotsakos.
E*Trade said it is focusing on existing customers by cross-selling bank and brokerage services. The brokerage also opened a brick-and-mortar "superstore" in New York City, and is expanding its alliance with Target by putting more than 1,000 new automated teller machines and 20 additional customer service centers in Target outlets nationwide.
"Looking ahead to the next six to 12 months, E*Trade plans to continue to invest in our efficient, scalable business model and broad product offering while aggressively looking for cost-savings opportunities to ensure long-term earnings growth," Cotsakos said.
Cotsakos added: "In many ways, the current economic
environment has been the ultimate test
of our business model. If our business can deliver operating
profits during a full market cycle, we expect it will perform to its
ultimate potential during stronger market, economic and business
conditions."
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