NEW YORK (TheStreet) -- Shares of Charles Schwab Corp (SCHW) - Get Report were gaining, up 1.28% to $34.08 in mid-morning trading Thursday, after the savings and loan holding company released better than expected 2015 second quarter earnings results.
The company earned 25 cents a share, an improvement from the profit of 23 cents a share it reported a year ago.
Revenue grew to $1.57 billion in the second quarter, up from the $1.48 billion Charles Schwab raked in last year.
Analysts were expecting Charles Schwab to earn 24 cents per share on revenue of $1.54 billion, according to Thomson Reuters data.
The company said higher fees and interest revenue helped offset a slowdown in trading, The Wall Street Journal reports.
CFO Joe Martinetto added that the company's diversified revenue streams helped "work through a mixed bag of environmental drivers."
San Fancisco, Calif.-based Charles Schwab is a savings and loan holding company that engages in wealth management, securities brokerage, banking, money management and financial advisory services.
The company provides financial services to individuals and institutional clients through two segments, investor services and advisor services.
Insight From TheStreet Research Team
TheStreet's Paul Price commented on Charles Schwab in a recent post on RealMoneyPro.com. Here is a snippet of what Price had to say about the stock:
Shares of brokerage firm Charles Schwab have defied logic over the last seven years. The stock peaked at $28.80 in 2008, when the company posted earnings per share of $1.06. Current-year EPS estimates now center on an almost identical $1.05.
Most people would assume Schwab would have a modest P/E based on such a poor track record. Instead, Schwab averaged a 23.2x multiple over that entire period, excluding 2010, when the P/E expanded drastically only because the firm's profits contracted.
Any disappointment, or simply a market correction, could torpedo this stock. A half-hearted replay of what occurred in 2009 or 2011 might send the shares down to below $24.
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Separately, TheStreet Ratings team rates SCHWAB (CHARLES) CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SCHWAB (CHARLES) CORP (SCHW) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company has had sub par growth in net income."
You can view the full analysis from the report here: SCHW Ratings Report