{"id":24430,"date":"2016-01-19T16:44:50","date_gmt":"2016-01-19T22:44:50","guid":{"rendered":"http:\/\/news.medill.northwestern.edu\/chicago\/?p=24430"},"modified":"2016-01-19T16:44:50","modified_gmt":"2016-01-19T22:44:50","slug":"charles-schwab-profit-rise-lands-just-short-of-forecasts","status":"publish","type":"post","link":"https:\/\/news.medill.northwestern.edu\/chicago\/charles-schwab-profit-rise-lands-just-short-of-forecasts\/","title":{"rendered":"Charles Schwab profit rise lands just short of forecasts"},"content":{"rendered":"

By Lucia Maffei<\/strong><\/p>\n

Charles Schwab Corp. reported fourth quarter 2015 results that topped expectations — but only with the help of one-time gains.<\/p>\n

In the latest quarter, the San Francisco-based\u00a0 provider of brokerage, banking and asset management services posted net income available to common stockholders of $378 million, or 28 cents a diluted share, up 15 percent from $329 million, or 25 cents per share in the year-ago quarter.<\/p>\n

Fourth-quarter revenues surged 9.0 percent to $1.69 billion from $1.55 billion a year ago.<\/p>\n

<\/p>\n

Analysts surveyed by MarketWatch had been expecting Schwab to report per-share earnings of 25 cents, and the 28 cents a share the company turned in technically beat forecasts. Without the help of a total of 4 cents a share provided by non-recurring items, however, the earnings per common share would have ended up one penny below expectations.<\/p>\n

Diluted Earnings Per Share (in dollars)<\/h2>\n

[field name=”chart”]<\/p>\n

Charles Schwab’s earnings per share over the last quarters. (Lucia Maffei\/MEDILL)<\/div>\n

\u201cNon-recurring items\u2019 impact is pretty small,\u201d confirmed Michael Wong, senior equity analyst at Morningstar, who added that overall Schwab is doing \u201cpretty well.\u201d\u00a0 He also pointed out: \u201cNon-recurring items have very little value for most analysts, because they don\u2019t signal what is going to happen in the future.\u201d<\/p>\n

Richard Repetto, a principal of Sandler O\u2019Neill and Partners, agreed that the company is performing \u201cin line with expectations.\u201d<\/p>\n

Mr. Wong said that Schwab\u2019s full-service approach is bearing fruit, noting that \u201cRevenue coming from fee-based accounts is more stable quarter to quarter and less subjective to competitive trading.\u201d<\/p>\n

For all of 2015, Schwab posted net income available to common stockholders of $1.36 billion, or $1.03 per diluted share, up 8.2 percent from $1.26 billion, or 95 cents per share in the 2014 comparable period. Revenues increased 5.3 percent to $6.38 billion from $6.06 billion the year before.<\/p>\n

\u201cThe future for Charles Schwab is looking pretty bright, because the positive effects of rising interest rates are overcoming the negative effects of the recent trouble in the stock market,\u201d Mr. Wong concluded.<\/p>\n

On Tuesday, Schwab shares closed at $26.55, down 3 cents, or less than one percent.<\/p>\n

Photo at top: The Charles Schwab office in Wacker Drive in Chicago. (Lucia Maffei\/MEDILL)<\/div>\n","protected":false},"excerpt":{"rendered":"

By Lucia Maffei Charles Schwab Corp. reported fourth quarter 2015 results that topped expectations — but only with the help of one-time gains. In the latest quarter, the San Francisco-based\u00a0 provider of brokerage, banking and asset management services posted net income available to common stockholders of $378 million, or 28 cents a diluted share, up […]<\/p>\n","protected":false},"author":244,"featured_media":24488,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[452,27,585],"tags":[764,753,755,757,756],"class_list":["post-24430","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-beyond-chicago","category-business","category-winter-2016","tag-brokerage-industry","tag-charles-schwab","tag-fourth-quarter-2015","tag-michael-wong","tag-richard-repetto"],"yoast_head":"\nCharles Schwab profit rise lands just short of forecasts - Medill Reports Chicago<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/news.medill.northwestern.edu\/chicago\/charles-schwab-profit-rise-lands-just-short-of-forecasts\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Charles Schwab profit rise lands just short of forecasts - Medill Reports Chicago\" \/>\n<meta property=\"og:description\" content=\"By Lucia Maffei Charles Schwab Corp. reported fourth quarter 2015 results that topped expectations — but only with the help of one-time gains. 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