Charles Schwab Corp. reported earnings that topped estimates as retail investors continued to jump in and out of the market amid volatility sparked by geopolitical uncertainty.
Schwab reported a record 11.9 million daily average revenue trades in the second quarter, a 57% increase from a year earlier. Trading revenue also rose, climbing 28% to $1.2 billion.
“During the second quarter, strong client engagement helped drive year-over-year revenue growth,”Chief Financial Officer Mike Verdeschi said in a statement.
During the quarter, Schwab benefited from the largest initial public offering ever, when SpaceX sold shares in June for the first time. Chief Executive Officer Rick Wurster said that day was one of the busiest on record for the 55-year-old company, given retail-investor interest in the event.
Net revenue of $7.07 billion for the three months through June was up 21% and beat the $6.92 billion consensus of analysts in a Bloomberg survey. The firm now expects revenue to increase 17.5% to 18.5% this year, after previously raising its full-year outlook for revenue growth to 14% to 15% in May.
Shares of the firm were up 2.2% at 9:12 a.m. in early New York trading.
Schwab has said it’s aiming to use artificial intelligence to enhance its services for more consumers. The firm has continued to lure more funds, with total net new assets surging 61% to $118.7 billion, more than the $111 billion analysts predicted.
Westlake, Texas-based Schwab said earlier this year that it will probably offer prediction markets strictly linked to financial events as competitors including Robinhood Markets Inc. and Interactive Brokers Inc. benefit from the product.
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