Charles Schwab Trades Higher On Q3 Earnings Beat

Charles Schwab SCHW reported third-quarter earnings of 70 cents per share, which beat the analyst consensus estimate of 65 cents by 7.69%. This is a 7.69% increase over earnings of 65 cents per share from the same period last year.

The company reported quarterly sales of $2.711 billion, which beat the analyst consensus estimate of $2.65 billion by 2.30%. This is a 5.12% increase over sales of $2.579 billion the same period last year.

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“The Federal Reserve has moved forward with expected mid-cycle easing, cutting short-term interest rates 25 bps in both July and September, and long-term rates have also shown significant declines,” said Charles Schwab CEO Walt Bettinger.

“Against this backdrop, clients brought us $56.6 billion in core net new assets, a third-quarter record, which brings our year-to-date total to $145.5 billion, representing a 6% annualized organic growth rate. In addition, we attracted 363,000 new brokerage accounts in the quarter, helping raise active brokerage accounts to 12.1 million, up 6% year-over-year.”

Charles Schwab shares traded up 3.9% to $39.20 Tuesday morning.