Charles Schwab Delivers Mixed Q2 Results; Shares Fall

American multinational financial services company Charles Schwab Corporation (SCHW) has reported mixed Q2 2021 results. Following the news, shares of the company declined 2.2% in Friday’s trading session and closed at $68.70.

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The company registered quarterly net revenues of $4.53 billion, up 85% from $2.45 billion reported last year, and surpassed estimates of $4.46 billion. This rise can be attributed mainly to the growth witnessed in net interest revenue, trading revenue and fee.

Notably, Charles Schwab reported adjusted EPS of $0.70, an increase of 30% from $0.54 last year. It missed the consensus estimate of $0.73 per share.

CEO of Charles Schwab Walt Bettinger said, “Clients opened 1.7 million new brokerage accounts in the second quarter, representing our third consecutive quarter in excess of a million new accounts when excluding M&A activity. Daily trade volume averaged 6 million over the same period – a 28% slowdown on the heels of the record first quarter, yet a still-impressive 4% increase over the fourth quarter of 2020, when we included TD Ameritrade for the first time. At the same time, both independent advisors and individual clients contributed to our total core net new assets of $108.8 billion, up 133% from a year ago – the highest second quarter in our history and a particularly noteworthy result when considering the impact of seasonal tax-related outflows.” (See Charles Schwab stock chart on TipRanks)

Recently, Deutsche Bank analyst Brian Bedell reiterated a Buy rating on the stock. The analyst, however, lowered the price target from $91 to $90, which implies upside potential of 30.6% from current levels.

The Street is cautiously optimistic about the stock with a Moderate Buy consensus based on 10 Buys and 5 Holds. The average Charles Schwab price target of $81.43 implies the stock has upside potential of 18.2% from current levels.

Charles Schwab scores a 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations. Shares have gained about 103.6% over the past year.