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Charles Schwab's stock rallies after profit, revenue rise above expectations

Tomi Kilgore

Shares of Charles Schwab Corp. jumped 3.9% in premarket trade Monday, after the discount broker reported a first-quarter profit and revenue that rose above expectations. Net income grew to $925 million, or 69 cents a share, from $746 million, or 55 cents a share, in the same period a year ago. The FactSet EPS consensus was 66 cents. Total revenue increased 14% to $2.72 billion, topping the FactSet consensus of $2.68 billion. New brokerage accounts total 386,000 during the quarter, and core net new assets rose 6% annualized to $51.7 billion. Total clients assets rose 8% to $3.59 trillion. Clients' daily average revenue trades fell 10% to 418,000 while asset-based trades rose 7% to 149,000. The stock has rallied 9.2% year to date, while the SPDR Financial Select Sector ETF has climbed 13.9% and the S&P 500 has hiked up 16.0%.