Charles Schwab (SCHW) posted earnings per share (or EPS) of $0.55 in 1Q18, which exceeded expectations by $0.02. Brokerages (XLF) have benefitted from market volatility, as it prompts customers to increase trading activity.
In 1Q18, Charles Schwab witnessed strong momentum in trading activity, which rose around 40% on a YoY basis. According to the management, the company continues to work on customer satisfaction in order to achieve growth.
Exceeding revenue expectations
Charles Schwab reported total revenues of $2.4 billion in 1Q18, which exceeded analyst expectations by $40 million. The company’s chief financial officer had favorable views on the company’s 1Q18 results. According to him, 1Q18 results were positively impacted by the reduction in corporate tax as well as a rise in interest rates. However, positive momentum in the company’s overall business activities was also a primary contributor.
In 1Q18, Charles Schwab’s net interest revenues amounted to $1.26 billion, while in 1Q17 the amount was $1 billion. As of April 20, 2018, Charles Schwab had a market capitalization of $72.3 billion, while Morgan Stanley (MS), Raymond James Financial (RJF), and Wells Fargo (WFC) had market caps of $97.0 billion, $12.3 billion, and $251.2 billion, respectively.
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