Post-Earnings Review - Charles Schwab

LONDON, October 24, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings review on The Charles Schwab Corp. (NYSE: SCHW). On October 15, 2014, the company announced its financial results for Q3 FY14 (period ended September 30, 2014). Click on http://www.investor-edge.com/FreeReports to read our free earnings review on Charles Schwab. During Q3 FY14, Charles Schwab Corp.'s net revenues and net earnings surged 13% and 11%, respectively on a Y-o-Y basis and diluted EPS increased $0.02 from the preceding year quarter. Our free coverage report can be accessed at:

http://www.investor-edge.com/register

Earnings Overview 

During Q3 FY14, The Charles Schwab Corp. reported net revenues of $1,551 million, compared to $1,373 million in the same period last year. The company's net revenues during the reported quarter outperformed the Bloomberg analysts' forecast of $1,496 million. Further, the company's net income broadened to $321 million, or $0.24 per diluted share in Q3 FY14, from $290 million, or $0.22 per diluted share in the year-ago quarter. Analysts from Bloomberg had expected the company to report net income of $322 million, or $0.24 per diluted share in Q3 FY14. The company's pre-tax profit margin for Q3 FY14 stood at 33.4%, compared to 33.8% in the corresponding quarter last year. The company's net new assets totaled to $34.7 billion in Q3 FY14, compared to $18.1 billion in the same period a year-ago, and total client assets were up 12% Y-o-Y at $2.40 trillion at reported quarter end. The free research on SCHW can be downloaded as in PDF format at:

http://www.Investor-Edge.com/SCHWFreeReport

Walt Bettinger, CEO of The Charles Schwab Corp., stated that the company's full-service investing model continues to resonate with clients and drive business growth. Despite signs of a summer effect in client interactions during the quarter, he said that the company still attracted 229,000 new brokerage accounts, and finished the period serving 9.3 million brokerage accounts, 970,000 banking accounts, and 1.4 million retirement plan participants, up 3, 4 and 8%, respectively, from month-end September 2013.

Mr. Bettinger informed that during the quarter, Charles Schwab held another 27,000 planning conversations, and assets enrolled in one of its retail or other advisory solutions reached $177 billion at quarter-end. Including relationships under the guidance of independent advisors, he said that $1.19 trillion in client assets at Charles Schwab are currently receiving some form of ongoing advisory service, which is an increase of 15% versus year-ago levels.

For Q3 FY14 and for the first nine months of the year, the company's pre-tax income was reduced by approximately $23 million, or $0.01 per share, by the combination of two nonrecurring items - a net insurance recovery of approximately $45 million and a charge relating to future changes in the company's geographic footprint totaling $68 million. Commenting on this, the company's CFO, Joe Martinetto, said "With or without the $45 million recovery, our third quarter revenues are the second highest quarter in our history - surpassed only by an extraordinary spike during the internet bubble - and they mark the 8th consecutive quarter of sequential growth for the firm." Sign up and read the free analyst's notes on SCHW at:

http://www.Investor-Edge.com/SCHW-24102014

Explaining the aforesaid charge, Mr. Martinetto said that it is consistent with expectations shared by the company for shrinking its footprint in San Francisco and setting the stage for future growth in other more cost-effective locations. He further noted that Charles Schwab's careful management of its reinvestment for growth and other operating costs to ensure it continued to track closely to the plan, the leading provider of financial services was able to achieve a pre-tax profit margin of 33.4% for the quarter including both non-recurring items.

Stock Performance 

On the day of the earnings release, October 15, 2014, The Charles Schwab Corp.'s stock edged 0.16 % higher to end the session at $25.32. On the last close, Thursday, October 23, 2014, the shares finished at $26.53, 2.00% above its previous day's closing price, after vacillating between $26.28 and $26.71 during the session. A total of 7.56 million shares were traded, which was above its three months average volume of 6.84 million shares. Over the previous three trading sessions and since the beginning of 2014, the company's shares have advanced 3.15% and 2.04%, respectively. However, the stock has fallen by 11.24% over the last one month and 3.70% over the past three months. Shares in The Charles Schwab Corp. are trading below their 50-day and 200-day moving averages of $28.36 and $26.95, respectively. Furthermore, the stock traded at a PE ratio of 28.22 and has a Relative Strength Index (RSI) of 37.60. Visit Investor-Edge and access the latest research on SCHW at:

http://www.Investor-Edge.com/SCHWEarningsCoverage

Sneak Peek to Corporate Insider Trading 

In the last one month The Charles Schwab Corp. has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on SCHW is available at:

http://www.Investor-Edge.com/SCHWInsiderTrading

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