Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : E*Trade (NYSE:ET) -- Ignore unavailable to you. Want to Upgrade?

To: KM who wrote (10254)	12/29/1999 11:48:00 AM
From: Spytrdr	Read Replies (2) \| Respond to of 13953

[B] Schwab sees Q4 EPS, revs beating est on strong trading vol --Schwab sees Q4 EPS 19-20c versus First Call's 17c estimate --Charles Schwab sees Q4 net $162 mln - $171 mln --Charles Schwab sees Q4 net 19c-20c shr on $1.1 bln revs --Charles Schwab sees year net $580 mln - $589 mln --Charles Schwab sees year net 69c-70c shr on $3.9 bln revs --Schwab co-CEO says December busiest trading month ever --Schwab assets rose by $100 bln to $700 bln in past 2 mos --Schwab sees record revenue of more than $1 bln in Q4 --Schwab sees 1999 EPS 69-70c versus First Call's 67c average --Schwab says adding 6,400 new accounts a day on average By Cameron Dueck, Bridge News New York--Dec 29--Charles Schwab Corp. is expecting to see fourth quarter 1999 earnings and revenues well above analyst estimates based on an increase in trading volumes and rapid account and asset growth. The company released an earnings forecast on Wednesday, helping to drive its stock as well as the stocks of other online brokerages higher. * * * Schwab said in a press release it expects fourth quarter earnings to come in at $162 million to $171 million, or 19 cents to 20c per share, beating First Call's estimate of 17c per share. The company predicts revenues will reach $1.1 billion. In the year-ago quarter, Schwab reported net income of $106 million, or 12c per share, on revenues of $789 million. "After a very active November, December is shaping up to be our busiest month ever, with customer daily average revenue trades of 236,000 through (Dec 27)," said David Pottruck, president and co-chief executive. "These trading volumes have helped put the company on track to achieve record revenues of more than $1 billion for the fourth quarter and achieve record profits as well." He said that customer assets at Schwab reached $700 billion at the end of last week, up $100 billion in less than 2 months, and that customers have opened an average of about 6,400 new accounts per day in December. For the full year, Schwab sees earnings of $580 million to $589 million, or 69c to 70c per share, on revenues of $3.9 billion. Net income for 1998 was $348 million, or 42c per share, on revenues of $2.7 billion. Schwab shares were up 2 11/16, or 7.8%, at 37 after being halted for a short time after the open. Other online brokerage stocks were also trading higher. OTHER ONLINE BROKERS EXPECTED TO SEE STRONG Q4 AS WELL Russell Keene, analyst at Putnam, Lovell, de Guardiola & Thorton, said Schwab's figures raise the expectations for other online brokerages as well. "I think there is a very good possibility that we'll see this in other brokers as well, because in general, higher volumes have been the case," he said. Richard Zandi, analyst at Salomon Smith Barney, agrees that the quarter should prove to be a strong one for the sector in general. "These numbers portend a strong quarter for the other brokerages as well," he said. Keene said Schwab surpassed expectations in both revenues and net income, and the main driver of that was the increase in daily trading volumes. "It looks like every month this quarter got progressively better," Keene said. Keene said he had recently revised his trades per day figure for Schwab to 175,000, but that based on the firm's data through Dec 27, Schwab is on track to reach an average of 195,000 trades per day for the fourth quarter, a 44% increase from third quarter activity levels. Keene said while Schwab's new account and asset growth figures are also encouraging, this quarter's results appear to be more a short-term function of increased trading activity. End Bridge News, Tel: (212) 372-7569 Send comments to: equity@bridge.com For charts and historical stories on this company, double-click the following: (BridgeStation and Telerate only): First Call Consensus Earnings Estimate Media://Analytics/Pages:SCH-Earnings-Estimate:/cmd=US;SCH/CF/EST 60-day Price History Media://Analytics/Pages:SCH-Price-History:/cmd=US;SCH[1099ID;60;20]/NVO Two-day intraday price chart Media://Analytics/Pages:SCH-intraday:/cmd=US;SCH[7334ID2] Trailing 12 months Earnings per Share Media://Analytics/Pages:SCH-EPS:/cmd=US;SCH[1584EPS] News stories on this company from Bridge News Media://NewsSearch::/Source=[B]/Symbol=US;SCH/go/newest/Search News stories from all vendors Media://NewsSearch::/Symbol=US;SCH/go/Search Bridge News, Tel: (212) 372-7569 Send comments to Internet address: equity@bridge.com [symbols:US;AMTD:US;DIR:US;EGRP:US;NDB:US;NITE:US;SCH:US;TWE] Dec-29-1999 12:34 GMT Symbols: US;AMTD US;DIR US;EGRP US;NDB US;NITE US;SCH US;TWE Source [B] BridgeNews Global Markets Categories: B/BRK I/BAN I/BNK I/FIS I/INF I/INL I/INP I/ISP I/NET I/SCR R/NME R/US S/BBE S/BCE S/ERN S/ERP S/NET S/ONF S/ONH S/STK CAP/STOCKS CAP/BANK CAP/INDEX