Charles Schwab shares up as third-quarter results surpass estimates

Investing.com -- Charles Schwab shares climbed around 3% in premarket trading Thursday after the U.S. brokerage reported third-quarter earnings and revenue that exceeded analyst expectations.

Earnings per share (EPS) came in at $1.31, ahead of consensus estimates of $1.23. Revenue jumped 27% year-over-year to $6.14 billion, also beating the $5.97 billion consensus.

“Strengthening organic growth trends, increasing adoption of wealth solutions, and favorable macroeconomic tailwinds powered another quarter of record revenue and earnings per share," said Charles Schwab President and CEO Rick Wurster.

The broker’s core net new assets totaled $137.5 billion in the quarter, a 44% increase from a year earlier. Total client assets climbed 17% year-on-year to an all-time high of $11.59 trillion.

The firm delivered an annualized return on average common equity of 21%, up from 14% in the same period last year, while annualized return on tangible common equity improved to 38% from 31% a year ago.

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