SCHW - Why Charles Schwab Stock Just Dropped 9%
2024-07-16 13:53:00 ET
Shares of online stockbroker The Charles Schwab Corporation (NYSE: SCHW) tumbled 8.8% through 12:55 p.m. EDT Tuesday despite beating analyst forecasts for the second quarter on both the top and bottom lines.
Heading into the quarter, analysts expected Schwab to report a $0.72 per-share profit on sales of $4.68 billion. In fact, Schwab earned $0.73 on sales of $4.69 billion -- and with a bigger net-interest margin of 2.03%.
So why is Schwab down on good news? Well, for one thing the news wasn't quite as good as the above makes it sound. Turns out, Schwab's "$0.73" profit was only a pro forma number. The company's earnings as calculated according to generally accepted accounting principles ( GAAP ) were actually only $0.66 per share.
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Why Charles Schwab Stock Just Dropped 9%