Charles Schwab profit: SCHW stock drops 4% on Q1 EPS Miss

<p>Charles Schwab (NYSE: SCHW) earnings for the first quarter of 2020 have SCHW shares lower on Wednesday. It is thanks to earnings per share (EPS) of 58 cents that Wall Street lacks an estimate of 62 cents. However, the bank’s revenue of $ 2.62 billion is higher than analysts’ estimates of $ 2.61 billion.

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Let us now take a closer look at the latest Charles Schwab results report.

Earnings per share for the quarter decreased by 15.94% from 69 cents during the same period last year. Revenue is 3.68% lower than $ 2.72 million from the first quarter of 2019. Charles Schwab’s earnings report also provides a net income of $ 795 million. This is a decrease of 17.53% compared to its net profit of $ 964 million from the same period the year before.

Walt Bettinger, CEO of Charles Schwab, said this about SCHW share income.

“We have been up and running day after day, with no significant disruption, as our customers were entrusted with $ 73.2 billion in core net assets during the first quarter, an increase of 42% over the previous year and a record in the first quarter. In addition, our clients opened a record 609,000 new brokerage accounts – over 280,000 in March alone – giving a total of 12.7 million active brokerage accounts at the end of the quarter, an increase of 8% compared to March 2019. ”

There is no Outlook update in the latest Charles Schwab performance report. Wall Street estimates for 2020 include a $ 1.95 EPS on revenue of $ 9.58 billion, but those numbers may change due to the new coronavirus.

The SCHW share fell 4.11% as of Wednesday afternoon.

At the time of writing, William White had no position in any of the above securities.

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