Schwab Sees Record Earnings in Fourth Quarter

The financial services firm also said it expects to beat estimates by at least 2 cents.
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Updated from 10:41 a.m. ET

Buoyed by what it called its busiest December ever,

Charles Schwab

(SCH)

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.