Updated from 10:41 a.m. ET
Buoyed by what it called its busiest December ever,
Wednesday said it expects to report record earnings in the fourth quarter and beat Wall Street's expectations by at least 2 cents.
Schwab shares jumped on the news, rising 2 15/16, or 8%, to 37 1/4 in early morning trading. (Schwab closed up 5 5/8, or 16.39%, at 34 5/16.)
"After a very active November, December is shaping up to be our busiest month ever, with customer daily average revenue trades of 236,000 through (Dec. 27)," David S. Pottruck, president and co-chief executive officer of the San Francisco-based financial services company, said in a statement. The high trading volumes have put the company on track to collect revenues of more than $1 billion for the quarter, Pottruck said.
Schwab also surpassed $700 billion in assets under management, and customers have opened an average of 6,400 new accounts per day during December, Pottruck said.
The company expects to report fourth-quarter earnings of 19-20 cents per share on revenues of approximately $1.1 billion; analysts polled by
First Call/Thomson Financial
predicted earnings of 17 cents per share.
For full-year 1999, Schwab sees earnings of between $580 million and $589 million, or 69-70 cents per share, on revenues of $3.9 billion. That too would beat analysts' forecasts, which had the company pulling in 67 cents per share.