Schwab Sees Third-Quarter Operating Profit Up 30%-35%
Charles Schwab, the largest U.S. discount brokerage, Monday said it expects third-quarter profit from continuing operations per share to rise 30 percent to 35 percent from the second quarter.
Schwab reported a profit of 20 cents per share from continuing operations in the quarter ended June 30.
San Francisco-based Schwab expects results to include a $15 million tax benefit for a recent special dividend, and revenue from investing proceeds from the $3.3 billion sale of its U.S. Trust wealth management unit to Bank of America Corp.
Schwab also said customers conducted an average 308,100 revenue-generating trades a day in August, up 3 percent from July and up 36 percent from August 2006. Total client assets rose 20 percent from a year earlier to $1.39 trillion.
Chief Financial Officer Joe Martinetto in a statement said trading activity "avoided the typical vacation-season slowdown." Average daily trades have fallen to about 216,000 in September, he said.
Analysts on average expected third-quarter profit of 23 cents per share, according to Reuters Estimates.
Schwab shares rose 40 cents to $20.35 in morning trading on the Nasdaq.