Are These 2 Financial Services Stocks Setting a Trend After Earnings?
The Charles Schwab Corporation (NYSE:SCHW) reported its results for the third quarter. Net income for the investment brokerage rose to $220 million (18 cents per share) vs. $124 million (10 cents per share) in the same quarter a year earlier. This marks a rise of 77.4% from the year earlier quarter. Revenue rose 11% to $1.18 billion from the year earlier. SCHW fell short of the mean analyst estimate of 19 cents per share. Analysts were expecting revenue of $1.19 billion.
President and CEO Walt Bettinger said, “Our unique combination of full-service, high-value brokerage continues to perform well and deliver growth despite a difficult economic environment. Although the environment weakened further during the third quarter, our clients stayed with their long-term investing plans. Their cash holdings at Schwab remained close to pre-crisis levels and they were consistently net purchasers of securities. Our full service capabilities were in demand during the recent quarter as enrollments in our advisory solutions continued at a strong pace. We ended September with a total of 2.4million accounts at Schwab either enrolled in retail advisory offerings or under the guidance of an independent advisor, an increase of 153,000 over September 2010.”
Competitors to Watch: optionsXpress Hldgs., Inc. (NASDAQ:OXPS), TD Ameritrade Holding Corp. (NASDAQ:AMTD), E TRADE Financial Corp. (NASDAQ:ETFC), Interactive Brokers Group, Inc. (NASDAQ:IBKR), LPL Investment Hldgs. Inc. (NASDAQ:LPLA), TradeStation Group, Inc. (NASDAQ:TRAD), Investment Tech. Group (NYSE:ITG), Bank of America Corp. (NYSE:BAC), Penson Worldwide, Inc. (NASDAQ:PNSN), and Raymond James Financial, Inc. (NYSE:RJF).
First Horizon National Corporation (NYSE:FHN) reported its results for the third quarter. Net income for First Horizon National Corporation rose to $36.1 million (14 cents per share) vs. $30.8 million (7 cents per share) in the same quarter a year earlier. This marks a rise of 17.1% from the year earlier quarter. Revenue was $397.2 million last quarter. FHN fell short of the mean analyst estimate of 16 cents per share. It beat the average revenue estimate of $359.1 million.
“We remain focused on controlling what we can control in this challenging environment. Our third quarter results show that we’re making solid progress in strengthening First Tennessee, our regional banking business, and FTN Financial, our capital markets business,” said Bryan Jordan, First Horizon’s CEO. “I’m proud of the work our employees do day in and day out to help our customers have an unparalleled experience when they do business with us.”
Competitors to Watch: Pinnacle Financial Partners (NASDAQ:PNFP), Bank of America Corp. (NYSE:BAC), SunTrust Banks, Inc. (NYSE:STI), Wells Fargo & Company (NYSE:WFC), Green Bankshares, Inc. (NASDAQ:GRNB), First Security Group, Inc. (NASDAQ:FSGI), PNC Financial Services (NYSE:PNC), Cadence Financial Corp. (NASDAQ:CADE), BancorpSouth, Inc. (NYSE:BXS), and BB&T Corporation (NYSE:BBT).