(Investor's Business Daily) - Charles Schwab (SCHW) reported slightly better than expected second-quarter earnings and revenue early Tuesday. The financial services firm ended the quarter with total client assets of $9.4 trillion. SCHW shares sank early while Bank of America (BAC) advanced.
Charles Schwab saw Q2 revenue increase less than 1% to $6.69 billion with earnings of 73 cents per share, down around 3% compared to Q2 2023. Prior to Tuesday, analysts forecast second-quarter EPS of 72 cents and sales totaling $4.68 billion, according to FactSet.
Charles Schwab stock tumbled 7.2% to 69.63 during market action on Tuesday. SCHW shares declined 0.4% to 75.07 on Monday and are below what MarketSurge analysis plots as a 79.49 buy point from a cup base.
The financial services firm also closed out the quarter with client assets hitting a record $9.4 trillion. Charles Schwab saw active brokerage accounts increase slightly less than 1% while its number of bank accounts gained 2% at the end of the second quarter.
Meanwhile, net revenue from interest totaled $2.16 billion, down 6% compared to the same quarter a year earlier and below analysts' expectations of $2.17 billion.
This comes as Wells Fargo (WFC) reported last week that net interest income declined 9% for the quarter, slightly worse than the 7.9% decrease that analysts predicted.
By Kit Norton
