Skip to main content

Shares of Charles Schwab  (SCHW)  declined Wednesday as markets tanked and the giant brokerage and financial services firm fell short of analysts' quarterly earnings expectations.

Charles Schwab's stock dropped 6.7% to $33.79 after the San Francisco company reported first-quarter earnings of 58 cents a share. 

That's down from the 69 cents a share Charles Schwab earned in the year-earlier quarter and short of the 64-cent estimate of analysts surveyed by Zacks Investment Research.

Overall, net income for the first quarter plunged 18% to $795 million, down from $964 million a year earlier.

Scroll to Continue

TheStreet Recommends

Charles Schwab reported revenue fell to $2.62 billion from $2.72 billion in the year-earlier quarter. The latest figure compares with the analyst estimate of $2.61 billion.

Charles Schwab attributed 2 cents a share of the earnings decline on measures taken to help employees amid the coronavirus crisis.

The company paid all non-officer employees $1,000 each to deal with expenses related to the coronavirus, for a total of $27 million.

Charles Schwab also posted 609,000 new account openings during the quarter, for a total of $73.2 billion in "core net new assets."

The volatile market over the first three months of 2020 also saw a big jump in trading, with records for trading activity reached every day in March, the company said.