The Charles Schwab Corporation (NYSE: SCHW) beat earnings estimates for the second quarter of 2019 while revenue matched expectations. Shares were up 3.8% in morning hours on Tuesday.
Net revenues of $2.7 billion were up 8% from the same period last year. Net income rose 8% to $937 million and diluted EPS rose 10% to $0.66. The consensus estimate was for EPS of $0.65.
CEO Walt Bettinger said, “Clients opened nearly 400,000 new brokerage accounts during the second quarter, bringing year-to-date new accounts to 772,000, helping push active accounts to the 12 million mark by quarter-end, up 7% year-over-year. This includes 3.5 million accounts under the guidance of the 7,500+ independent advisors who custody with us; those accounts are up 8% as advisors successfully build their businesses with our assistance.”
During the quarter, net interest revenue rose 14% year-over-year to $1.6 billion, driven mainly by higher interest-earning assets relating to the transfer of sweep money market fund balances to bank and broker-dealer sweep. Net interest margin rose 10 basis points to 2.40%, reflecting the Fed’s 2018 rate hikes.
Asset management and administration fees saw a drop of 3% year-over-year to $786 million due to lower money market fund revenue and declines in Mutual Fund OneSource balances. Trading revenue fell 3% to $174 million due to a decrease in average revenue per trade.
Other revenue increased 32%, driven mainly by a gain on the sale of PortfolioCenter, a portfolio management and reporting software solution for advisors, to Tamarac Inc.
Charles Schwab repurchased 29.1 million shares for $1.2 billion during the quarter and now has an outstanding authorization of $2.8 billion. The company’s preliminary Tier 1 Leverage ratio at quarter-end was 7.3%.
Cloudera Inc. (NYSE: CLDR) reported a narrower loss in the first quarter of 2021 driven by lower costs and expenses as well as higher revenue. The results exceeded analysts' expectations.
CrowdStrike Holdings Inc. (NASDAQ: CRWD) has witnessed strong momentum with the stock gaining over 96% since the beginning of the year. The company delivered strong results for the first quarter
Internet security has been evolving over time, aided by the rapid adoption of cloud computing, the ubiquity of mobile phones, and the growing threats that cause serious problems to enterprises