SCHW 4Q09 Earnings Preview → Thursday, April 15th, before the bell
We expect SCHW to report 1Q10 EPS of $0.11, in line with consensus estimates
Earnings should decline -41% Y/Y, in-line with management´s lowered guidance for the quarter (released in February), as:
· Money market fee waivers should increase 15% Q/Q to $127 mn
· Trading revenues should decline -12% Q/Q on lower DARTs and commissions (SCHW reduced its trading fees xx% to a flat $8.95 per trade on January 19)
· Total expenses should increase by +5.5% Q/Q, with compensation expense increasing +8% Q/Q and advertising expenses +25% Q/Q as the company rolls out a new campaign.
Provided By: Equity Research Desk www.erdesk.com