A man passes by a location of financial broker Charles Schwab in New York, March 20, 2023.
Brendan McDermid | Reuters
Shares of brokerage firm Charles Schwab rose sharply on Tuesday after the company’s second-quarter report exceeded expectations.
Schwab reported adjusted earnings per share of 75 cents on revenue of $4.66 billion. Analysts had predicted earnings of 71 cents per share on revenue of $4.61 billion, according to Refinitiv.
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Shares surged 12% on Tuesday.
Shares of Schwab rose sharply on Tuesday.
According to Chief Financial Officer Peter Crawford, revenue, which had declined 9% compared to the previous year, was negatively affected by customers reallocating their cash to higher-rate options. However, Crawford noted that in June, there was a significant deceleration in cash outflows and the company expects client cash to start growing again by the end of the year.
CEO Walt Bettinger stated on “Squawk on the Street” that the process of “client cash realigning” has decreased by over 80% since the first quarter.
“We proactively advised our clients to move their sweep cash into higher yielding balances, and they have largely complied with that recommendation, which started around 15 to 16 months ago,” Bettinger explained. “What
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Denial of responsibility! Vigour Times is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
