Charles Schwab Earnings: Second Straight Quarter of Increasing Profit

S&P 500 (NYSE:SPY) component The Charles Schwab Corporation (NYSE:SCHW) reported net income above Wall Street’s expectations for the third quarter. Charles Schwab is a savings and loan holding company. Through its subsidiaries, the company provides individuals and institutional clients with securities brokerage, banking and related financial services.

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The Charles Schwab Corporation Earnings Cheat Sheet

Results: Net income for The Charles Schwab Corporation rose to $247 million (19 cents per share) vs. $220 million (18 cents per share) in the same quarter a year earlier. This marks a rise of 12.3% from the year-earlier quarter.

Revenue: Rose 1.7% to $1.2 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: The Charles Schwab Corporation beat the mean analyst estimate of 17 cents per share. It fell short of the average revenue estimate of $1.23 billion.

Key Stats:

The company has now beaten estimates the last two quarters. In the second quarter, it topped expectations with net income of 20 cents versus a mean estimate of net income of 18 cents per share.

Net income has increased 24.5% year-over-year on average across the last five quarters. The biggest gain came in the third quarter of the last fiscal year, when income climbed 77.4% from the year-earlier quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is 17 cents per share, down from 20 cents ninety days ago. For the fiscal year, the average estimate has moved down from 71 cents a share to 66 cents over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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