Charles Schwab shares pop on Q3 earnings beat, large transactional cash build

"Charles Schwab (NYSE:SCHW) posted earnings and revenue for the fiscal Q3 above analyst expectations, sending its shares rising more than 8% Tuesday.

The financial services firm reported adjusted earnings per share (EPS) of $0.77, topping the average analyst estimate of $0.75.

Quarterly revenue hit $4.85 billion, also higher than the consensus estimate of $4.77 billion.

Total net new assets were reported at $90.8 billion, while total client assets jumped 27% year-over-year to a record $9.92 trillion, ahead of the estimated $9.75 trillion.

"Our momentum with clients continues to build following the successful completion of the Ameritrade conversion earlier this year," said Walt Bettinger, co-chairman and CEO of Charles Schwab.

Adjusted operating expenses during the quarter totaled $2.85 billion, slightly higher than our estimate of $2.83 billion, leading to an adjusted operating margin of 41.2%, exceeding management’s guidance of at least 40%."

Source: https://www.investing.com/news/stock-market-news/charles-schwab-shares-rise-on-solid-q3-print-3663224