The stock of Charles Schwab Corp. (SCHW) rose 0.6% in premarket trade on Tuesday, following the release of the company’s second-quarter earnings report. Despite a decrease from the previous year, the earnings still exceeded consensus estimates.
During the quarter, Charles Schwab Corp. recorded a net income of $1.294 billion, or 64 cents per share, compared to $1.793 billion, or 87 cents per share, in the same period last year. Adjusted per-share earnings came in at 75 cents, surpassing the FactSet consensus of 71 cents.
Additionally, the company reported a 9% decrease in revenue to $4.656 billion, which still outperformed the FactSet consensus of $4.610 billion.
Strong Growth in Net New Assets
Schwab continued to see strong growth in net new assets, with $52 billion gathered during the quarter. This brings the year-to-date total to over $180 billion.
CEO Walt Bettinger commented on the company’s performance, stating, “While we observed signs of typical tax seasonality, as well as softer investor sentiment at the beginning of the quarter, we still attracted nearly 1 million new brokerage accounts and finished the period serving $8.02 trillion in total client assets across 34 million accounts.”
Year-to-date, Charles Schwab Corp.’s stock has fallen 30%, whereas the S&P 500 has gained 17.8%.