Charles Schwab (NYSE:SCHW) reported worse-than-expected Q1 EPS and net revenue. As a result, shares are down 5% in pre-open Monday.
The financial services company reported adjusted EPS of 77c in the first quarter, down from 84c in the year-ago period and below the consensus estimates of 84c per share. Q1 EPS was 67c, down from 73c per share in the same period last year.
Net revenue came in at $4.67 billion, down 0.9% YoY, and missing the consensus projection of $4.81 billion.
Schwab reported 6.58 million daily average trades in the period, down 2% YoY and above the expected 6.4 million. Revenue per trade totaled $2.36, down 0.4% YoY and missing the expected $2.5 million.
Trading revenue stood at $963 million, down 21% YoY and below the analyst consensus of $999.3 million. The company reported $1.07 billion in asset management and administration fees, up 5.1% YoY and compared to the analyst expectations of $1.1 billion.
Total client assets stood at $7.73 trillion, up 11% YoY and compared to the estimates of $7.86 trillion. Total net new assets were reported at $120.5 billion, compared to the expected $120.28 billion.
SCHW said it added 1.2 million new brokerage accounts in the quarter, missing the consensus estimates of 1.3 million. The total number of active brokerage accounts stood at 33.58 million, up 5.3% YoY and just below the consensus estimates of 33.7 million.
CEO Walt Bettinger said that the “business momentum remained quite strong throughout the first quarter,” while CFO Peter Crawford noted that results reflect “our ongoing success with clients while contending with the effects of a challenging environment.”
By Senad Karaahmetovic