Charles Schwab stock up 4% after beating Q1 earnings and revenue estimates

Charles Schwab (NYSE: SCHW) stock increased about 4% in pre-market trading hours as it beat Street’s views for Q1 earnings and revenue. The financial services firm reported earnings of $0.69 per share on revenue of $2.72 billion, representing a year-over-year growth of 25% and 14%, respectively. On average, analysts expected Charles Schwab to post earnings of $0.66 per share on revenue of $2.68 billion.

CEO Walt Bettinger stated that investors faced a mixed geopolitical and economic landscape, including international trade negotiations, the evolving Brexit debate, and a potential slowing in Fed rate hikes. He added that this environment impacted investor sentiment and activity.

New brokerage accounts totaled 386,000 during the quarter. Net new assets grew 6% annually to $51.7 billion. Total client assets reached a record $3.59 trillion at March-end March, up 8% year-over-year.

Net interest revenue grew 33% to $1.7 billion in the recently ended quarter. Net interest margin expanded to 2.46%, up from 2.12% a year earlier, following the Fed’s four rate hikes in 2018. Trading revenue declined by 8% to $185 million as the client trading activity was below last year’s pace.

Other online brokerage firms namely, Interactive Active Brokers (IBKR), E*trade Financial (ETFC) and TD Ameritrade (AMTD) are set to report their quarterly earnings on Tuesday, Wednesday and April 23, respectively. After the market opened today, SCHW stock pared its pre-market gains. Stocks of IBKR, ETFC and AMTD were up modestly when the market opened today.

Shares of Charles Schwab had gained 9% since the beginning of 2019 and had lost 12% in the past 12 months period.

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