Charles Schwab’s second-quarter earnings have sent shares soaring over 2% in pre-market trading. The company reported solid revenue and net income that exceeded Wall Street estimates, capitalizing on the volatile markets caused by President Trump’s trade war.
The surge in trading activity led to a 60% increase in net income to $2.13 billion, with client trading revenue rising 23% to $952 million and net interest income jumping 31% to $2.8 billion. Total client assets also saw a significant rise of 14% year-over-year to $10.76 trillion.
However, bank deposits declined 8% year-over-year to $233 billion, reflecting continued shifts in client cash management. Despite this, Charles Schwab’s revenue reached $5.85 billion, surpassing the consensus estimate of $5.7 billion and beating analyst expectations for earnings per share (EPS) at $1.14.
Analysts have a Strong Buy consensus rating on SCHW stock, with an average target price of $98.53 implying a 6% upside potential.
Source: https://www.tipranks.com/news/schw-earnings-charles-schwab-stock-climbs-on-q2-beat