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Volatile Markets Boost Schwab’s Earnings

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<i> Bloomberg News</i>

Discount broker Charles Schwab Corp. said it expects third-quarter earnings to beat analysts’ estimates by as much as 17%, as volatile markets spurred trading and boosted commissions. Schwab shares surged $3.38 to close at $40.56 on the New York Stock Exchange after the San Francisco-based company said it expects net income to rise at least 18%, to between $90 million and $97 million, or 33 cents to 35 cents a share, from $76.5 million, or 29 cents, in the year-ago period. Analysts had forecast Schwab would earn 31 cents a share, according to First Call Corp. The earnings surprise comes as the average number of trades Schwab customers made a day in August hovered near July’s record of 102,600. Nine of the 10 busiest trading days ever on the NYSE have occurred since the beginning of August, as the Dow Jones industrial average dropped as much as 15% before recovering somewhat.

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