Charles Schwab said it earned $326 million, or 24 cents a share, up from $206 million, or 15 cents a share, in the same period one year earlier. Analysts had expected 22 cents a share. Revenue increased 15% year over year to $1.48 billion, which edged analysts' expectations of $1.47 billion.
Schwab also said it added $34.2 billion of net new assets in the first quarter, which represents a 6% annualized organic growth rate. New brokerage accounts increased by 258,000, a 6% year-over-year improvement. Schwab also reported a record 550,000 total trades a day in the quarter and an all-time high total client assets of $2.31 trillion.
"Higher levels of client trading activity, balances in fee-based products and services, and cash held at Schwab as part of investing relationships all contributed to the 15% year-over-year increase in revenue we achieved for the first quarter," said CEO Walt Bettinger in a statement.
The stock was up 3.6% to $26.21 at 10:08 a.m. on Tuesday.
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Separately, TheStreet Ratings team rates SCHWAB (CHARLES) CORP as a "buy" with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SCHWAB (CHARLES) CORP (SCHW) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, compelling growth in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."