Schwab shares rise on record earnings per share
Charles Schwab Corp.
stock advanced by 3.3% in premarket trading Monday after the broker said it posted its “strongest quarterly performance in company history” as it topped Wall Street expectations for profit and revenue. The brokerage firm said its third-quarter net income jumped 32% to $2.02 billion, to a record of 99 cents a share, from $1.53 billion, or 74 cents a share, in the year-ago quarter. Adjusted profit increased to $1.10 a share from 84 cents a share. Revenue increased by 20% to $5.5 billion. Wall Street analysts expected Charles Schwab to earn $1.05 a share on revenue of $5.04 billion, according to estimates compiled by FactSet. Brokerage accounts rose 4% to 34 million, while record third-quarter retail inflows totaled $115 billion at an annualized growth rate of 7%.