A man walks past the offices of financial broker Charles Schwab in New York’s financial district on March 20, 2023.
Brendan McDermid | Reuters
Brokerage Company Stocks Charles Schwab The company rose sharply on Tuesday second quarter report beyond expectation.
Charles Schwab reported revenue of $4.66 billion and adjusted earnings of 75 cents a share. Analysts polled by Refinitiv estimated earnings of 71 cents a share on revenue of $4.61 billion.
The stock rose 11% in early trading.
Shares of Schwab rose sharply on Tuesday.
Customers reallocated cash at higher interest rates, leading to a 9% year-over-year revenue decline, Chief Financial Officer Peter Crawford said in a release. However, Crawford said, “we observed a sustained and significant slowdown in the pace of daily cash outflows in June” and the company expects customer cash to start growing again by the end of the year.
Charles Schwab shares were down nearly 30% for the year on Tuesday. The stock was hit hard during March’s regional banking crisis as investors grew concerned about the value of debt on Schwab’s balance sheet and potential deposit outflows.
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