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Key Takeaways
- Charles Schwab beat first-quarter profit and revenue estimates as the runup in U.S. equities during the quarter fueled its business.
- The discount brokerage and financial advisory firm said investor sentiment “improved noticeably” during the first three months of the year.
- Schwab’s brokerage accounts, trading volume, and margin balances all increased.
Shares of Charles Schwab (SCHW) rose 4% in early trading Monday after the discount brokerage and financial advisory firm reported better-than-expected results because of “an improved macroeconomic environment.”
Schwab posted first quarter earnings per share (EPS) of 74 cents versus 93 cents the same period last year. Revenue was down 7.3% to $4.74 billion. However, both exceeded analysts’ forecasts.
The company noted that it benefited from strong equity markets and organic asset gathering during the period. It said investor sentiment “improved noticeably as clients were net buyers of securities and increased their exposure to equities.”
Schwab said active brokerage accounts were up 3% to 35.3 million. Trading volume rose 15%, and margin balances gained 9%.
Total net new assets plunged 41.5% to $88.2 billion. Revenue per trade slipped 7.8% to $2.25. Bank deposits fell 17.3% to $269.5 million.
Charles Schwab shares were 4.1% higher at $72.92 as of about 11:45 a.m. ET and have gained more than 38% in the last 12 months.
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