Charles Schwab Stock Rises as Fourth Quarter Results Top Estimates

Key Takeaways

Shares of Charles Schwab ( SCHW ) rose Tuesday morning after the financial services company's fourth-quarter results beat analysts' expectations as trading activity rose and asset management fees set a quarterly record.

The firm reported $1.84 billion in profits for the quarter, up from $1.05 billion the same time last year and the $1.68 billion analysts had projected, according to estimates compiled by Visible Alpha. Charles Schwab recorded $5.33 billion in revenue , up 20% year-over-year and better than the $5.21 billion analysts had expected.

Schwab Says Trading Activity 'Surged' Post-Election

The asset manager and brokerage firm reported $2.53 billion in net interest income , above the $2.44 billion analysts had expected. Schwab said it also saw trading activity jump 11% compared to the third quarter "as client engagement surged following the election."

Charles Schwab said its asset management and administration fees hit a quarterly record of $1.5 billion, and said trading revenue rose 14% compared to the same time last year thanks to increased trading volume.

Last quarter, the company said it expected to enter 2025 with "good momentum" as its third-quarter results also beat estimates.

Charles Schwab shares were up more than 6.3% Tuesday morning, and are up more than 25% in the last 12 months.

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