Charles Schwab Stock Slips After Profit Rises In Line With Expectations

By Tomi KilgoreMarketsMarketWatch Pulse

Shares of Charles Schwab Corp. slipped 0.9% in premarket trade Tuesday, after the discount broker reported a second-quarter profit that was in line with expectations, while revenue was slightly above. Net profit rose to $575 million, or 39 cents a share, from $452 million, or 30 cents a share, in the same period a year ago. The FactSet consensus was 39 cents. Revenue increased 17% to $2.13 billion from $1.83 billion, above the FactSet consensus of $2.12 billion. Clients opened over 350,000 new brokerage accounts during the quarter, with the year-to-date total reaching 719,000, marking the biggest first-half increase in 17 years. Total client assets rose 16% to $3.04 trillion. The stock has soared 13.2% over the past three months through Monday, while the SPDR Financial Select Sector ETF has tacked on 7.6% and the S&P 500 has gained 5.0%.

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