Charles Schwab Corp. (NYSE: SCHW) gained in pre-market trading at the time of publishing on Tuesday after the regional bank reported second-quarter adjusted earnings of $0.75 per share, a decline of 23% year-over-year but surpassing consensus estimates of $0.71 per share.
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The bank’s revenues also declined by 9% year-over-year to $4.66 billion but above consensus estimates of $4.61 billion.
Charles Schwab’s CFO Peter Crawford noted, “While navigating significant near-term headwinds, we generated second quarter revenues of $4.7 billion, down 9% on a year-over-year basis. While anticipated client cash realignment, along with net equity buying during June, pushed cash levels lower, we observed a continued and substantial deceleration in the daily pace of cash outflows versus prior months. The continuation of this trend through the end of the quarter further strengthens our conviction that this realignment activity will inflect before the end of 2023, unlocking growth in client cash held on the balance sheet.”
Overall, analysts are cautiously optimistic about SCHW stock with a Moderate Buy consensus rating based on 12 Buys, two Holds, and two Sells.
