Schwab Beats Analysts' Forecasts for 4Q Adjusted Profit
By Micah Maidenberg
Charles Schwab Corp. said its acquisition of TD Ameritrade
helped fourth-quarter results, but closing that deal came with
Schwab on Tuesday reported earnings of $1.14 billion, or 57
cents a share, compared with a profit of $852 million, or 62 cents
a share, for the year earlier. The company's adjusted profit rose
to 74 cents a share, or three cents more than what analysts
predicted for that metric, according to Factset.
Revenue increased to $4.18 billion from $2.61 billion, above the
$4.11 billion consensus estimate for the fourth quarter.
Schwab completed its purchase of TD Ameritrade on Oct. 6.
Transaction-related costs totaled $429 million during the latest
period on a pre-tax basis, the company said, and $632 million for
the full year.
That deal "not only builds scale, but also supports our ability
to meet specific needs across client segments," Chief Executive
Walt Bettinger said.
Schwab said investors had 29.6 million active brokerage accounts
through it as of the end of last year, up from 29 million as of the
end of October.
Write to Micah Maidenberg at firstname.lastname@example.org
(END) Dow Jones Newswires
January 19, 2021 09:22 ET (14:22 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.