Investment services firm Charles Schwab (NYSE: SCHW) beat third quarter 2019 earnings results that helped the stock to climb up about 4% in the pre-market trading session. Charles Schwab’s earnings grew 8% to $0.70 per share in the three months ended September 30, 2019 period, while revenue rose 5% to $2.71 billion. Analysts had projected Charles Schwab to post earnings of $0.65 per share on revenue of $2.65 billion for the third quarter.
Despite the rate cuts in July and September, core net new assets grew 6% to $56.6 billion in the third quarter of 2019 versus $53.5 billion in the prior-year quarter. The online brokerage firm attracted 363,000 new brokerage accounts in the quarter, raising the active brokerage accounts to 12.1 million, up 6% year-over-year. Client assets totaled a record $3.77 trillion at quarter end, up 6%.
The San Francisco, California-based firm’s net interest revenue rose 7% in 3Q to $1.6 billion, due to higher investment yields and higher client cash allocations. Total expenses of $1.5 billion in the third quarter included $62 million in severance charges associated with the elimination of 3% of the company’s workforce.
Earlier this month, Charles Schwab slashed online trade commissions for stocks, ETFs, and options listed on U.S. or Canadian exchanges. Schwab’s peers Interactive Brokers Group’s (NASDAQ: IBKR), TD Ameritrade Holding (NASDAQ: AMTD) and Fidelity had also cut down their trade commissions to $0.
“Our contemporary full-service model helps us remain a trusted partner as clients navigate an environment that has only grown more cloudy in recent months. The equity markets have shown noteworthy durability – the S&P 500 remained up nearly 20% for the year as of quarter-end. Concerns persist, however, regarding global trade and a generally softening economic outlook,” said CEO Walt Bettinger.
Charles Schwab stock had given a negative return in both year-to-date and past 52 weeks periods, declining 9% and 23%, respectively.
Target Corporation (NYSE: TGT) reported fourth-quarter 2020 financial results before the opening bell today. The department store chain reported Q4 revenue of $28.3 billion, up 21% year-over-year and higher than
Autodesk, Inc. (NASDAQ: ADSK) today reported its fourth quarter financial results for the period ended January 31, 2021. Net income for the fourth quarter was $911.3 million, or $4.10 per
Beyond Meat (NASDAQ: BYND), a specialist in plant-based meat substitutes, Thursday reported a wider loss for the fourth quarter, despite an increase in revenues. The numbers also missed the consensus