A man passes by a location of financial broker Charles Schwab in the financial district in New York, March 20, 2023.
Brendan McDermid | Reuters
Shares of brokerage firm Charles Schwab rose sharply Tuesday after the company’s second-quarter report topped expectations.
Schwab generated 75 cents in adjusted earnings per share on $4.66 billion in revenue. Analysts surveyed by Refinitiv estimated 71 cents per share on $4.61 billion of revenue.
Shares jumped 11% in morning trading.
Shares of Schwab rose sharply on Tuesday.
CFO Peter Crawford said in the release that revenue — which fell 9% year over year — was hurt by customers reallocating their cash with higher rates. However, Crawford stated that “we observed a continued and substantial deceleration in the daily pace of cash outflows” in June and that the company expected client cash to start growing again by the end of the year.
Shares of Schwab entered Tuesday down nearly 30% for the year. The stock was hit hard during the regional banking crisis in March, as investors grew concerned about the value of the debt on Schwab’s balance sheet and potential deposit outflows.
