Schwab 2Q Profit Up 28%, In Line With Estimations

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The Charles Schwab Corporation
SCHW
reported 28 percent increase in its bottom line for the second quarter driven by 17 percent uptick in the top line. While revenue exceeded the Street expectations, earnings were in line with the predictions. The Charles Schwab said that its net income advanced 28 percent to $452 million from $353 million in the year-ago quarter. On a per share basis, earnings advanced 20 percent to $0.30 a share from $0.25 a share, which was in line with the estimations. The company's top line grew 17 percent to $1.83 billion from $1.57 billion in the previous year quarter. Street expected the company to generate $1.8 billion revenue. Its CEO, Walt Bettinge, commented on the results saying, " Our second quarter pre-tax profit margin of 39.4% was the highest since our record performance in 2008. During the intervening seven-plus years, we have focused on balancing near-term profitability with reinvestment to drive growth, while working through the economic and interest rate aftermath of the financial crisis." He added, "From 2009 through mid-2016, we coped with extraordinary pressure on our revenues while investing approximately $3 billion in our brand and service capabilities, expanding our client base by approximately $1.20 trillion to $2.62 trillion, and building our earnings to today's record level. Our second quarter pre-tax profit margin represented the 13th consecutive quarter in excess of 30% and a significant improvement from the sub-30% margins that followed the crisis." On Monday, the stock traded down by 0.3 percent while writing this.
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Posted In: EarningsNewsPress ReleasesGeneral
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