12/15/2009 (6:01 pm)
Schwab issues earnings warning
San Francisco brokerage Charles Schwab said Monday that fourth-quarter earnings will come in lower than the third quarter.
The firm said earnings per share will be 2 cents to 4 cents lower than the prior quarter due to lower interest rates and slower trading in recent weeks.
Schwab (NASDAQ: SCHW) also said Monday that it plans to waive $108 million in fees on its money market funds, an 8 percent increase from the firm’s earlier forecast.
The earnings warning indicates Schwab expects to earn 13 cents to 15 cents per share in the current quarter, down from 17 cents in the third quarter and 27 cents per share in last year’s fourth quarter Payday advance.
November’s daily average trading — a key performance measure at Schwab — was down 11 percent from October and down 27 percent from November 2008, when financial markets were in a tailspin.
“Continued declines in the rate environment have led to heightened revenue pressures … and client trading volumes have slowed in recent weeks,” said Joe Martinetto, Schwab’s chief financial officer.
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