Post-Earnings Coverage - Charles Schwab

LONDON, May 5, 2015 /PRNewswire/ --

Editor Note: For more information about this release, please scroll to bottom.

Investor-Edge.com has issued free post-earnings coverage on The Charles Schwab Corp. (NYSE: SCHW). On April 15, 2015, the company announced its financial results for Q1 FY15 (period ended March 31, 2015). Click on http://get.Investor-Edge.com/pdf/?c=Charles%20Schwab&d=05-May-2015&s=SCHW to read our free earnings review on The Charles Schwab Corporation (Charles Schwab). During Q1 FY15, the company's net revenues improved 3% Y-o-Y. Further, Charles Schwab's net income for Q1 FY15 came in at $302 million, or $0.22 per diluted common share. CEO of Charles Schwab, Walt Bettinger, stated that the company's strong client momentum continued in Q1 FY15, as it's innovative, full-service model continued to resonate with investors. Our free coverage report can be accessed at:

http://get.Investor-Edge.com/pdf/?c=Charles%20Schwab&d=05-May-2015&s=SCHW

Earnings Overview 

During Q1 FY15, Charles Schwab's net revenues were $1.53 billion compared to $1.48 billion in Q1 FY14. The company's net revenues for Q1 FY15 were in-line with Bloomberg analysts' forecast of $1.53 billion. Charles Schwab's asset management and administration fees improved 5% to $644 million in Q1 FY15 from $611 million in Q1 FY14. Additionally, the company's net interest revenue grew 6% to $588 million in Q1 FY15 from $553 million in Q1 FY14. Trading revenues were $227 million in Q1 FY15 compared to $247 million in Q1 FY14.

For Q1 FY15, Charles Schwab's income before taxes stood at $484 million compared to $522 million in Q1 FY14. The company's pre-tax profit margin for Q1 FY15 was 31.7%, compared to 35.3% in Q1 FY14. Charles Schwab's net income and diluted earnings per common share for the reported quarter fell 7% Y-o-Y and 8% Y-o-Y, respectively, from $326 million, or $0.24 per diluted common share, in Q1 FY14. Analysts from Bloomberg had expected the company to report net income of $307 million, or $0.23 per diluted common share, in Q1 FY15. Free research on SCHW can be downloaded in PDF format at:

http://get.Investor-Edge.com/pdf/?c=Charles%20Schwab&d=05-May-2015&s=SCHW

In Q1 FY15, Charles Schwab's net new assets totaled $28.7 billion compared to $34.2 billion in Q1 FY14. Total client assets in Q1 FY15 were up 9% at $2.52 trillion compared to $2.31 trillion in Q1 FY14. The company opened 274,000 new brokerage accounts in Q1 FY15, up 6% from 258,000 in Q1 FY14. Moreover, the company's average balance of total interest-earning assets in Q1 FY15 was $149.42 billion compared to $137.14 billion in Q1 FY14.

Charles Schwab's annualized return on average common stockholders' equity for Q1 FY15 was 10% compared to13% in Q1 FY14.

Mr. Bettinger said Charles Schwab continued to build awareness of its wealth management capabilities during Q1 FY15, and client balances receiving ongoing advisory services kept growing faster than assets overall. He informed that on March 09, 2015, the company launched Schwab Intelligent Portfolios™, continuing its tradition of innovation on behalf of investors. The company also launched Trade Source™ for its more actively trading clients, bringing them the information they need to make investing decisions via a more efficient, powerful tool that is accessible on a browser or tablet, he added. Sign up and read the free analyst's notes on SCHW at:

http://get.Investor-Edge.com/pdf/?c=Charles%20Schwab&d=05-May-2015&s=SCHW

The CFO of Charles Schwab, Joe Martinetto, commented that even as the company's business growth remained strong, environmental factors contributed to a disappointing rate of revenue growth for Q1 FY15. He stated that the company's revenue picture was shaped by an environment that included volatile equity market performance, largely flat-to-lower interest rates, and client trading activity that slowed as the quarter progressed.

Mr. Martinetto informed that the company bolstered its balance sheet liquidity during Q1 FY15 by issuing $1 billion in long term debt comprised of $625 million in 1.50% senior notes due in three years, and $375 million in 3.00% senior notes due in ten years; the majority of the proceeds were invested in term Treasury Notes. Visit Investor-Edge and access the latest research on SCHW at:

http://get.Investor-Edge.com/pdf/?c=Charles%20Schwab&d=05-May-2015&s=SCHW

Stock Performance  

On the day of the earnings release, April 15, 2015, Charles Schwab's stock edged 0.26% higher to end the session at $30.53. Since then, the stock has moved both ways with gains outperforming losses. On the last close, Monday, May 04, 2015, shares of the company finished at $31.38, up 2.18%, after vacillating between $30.60 and $31.55. A total of 7.96 million shares were traded which was above their three months average volume of 6.75 million shares. The stock has gained 4.57% over the last one month and 13.65% in the previous three months. Further, the company's shares have advanced 3.94% since the beginning of 2015. Shares in Charles Schwab closed above their 50-day and 200-day moving averages of $30.22 and $28.82, respectively. Furthermore, the stock traded at a PE ratio of 33.91 and has a Relative Strength Index (RSI) of 55.87.

Sneak Peek to Corporate Insider Trading 

In the last one month, Charles Schwab has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on SCHW is available at:

http://get.Investor-Edge.com/pdf/?c=Charles%20Schwab&d=05-May-2015&s=SCHW

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