By Sam Boughedda
Charles Schwab (NYSE:SCHW) shares tumbled Wednesday after the company missed earnings and revenue expectations in its fiscal fourth quarter.
The financial services firm reported earnings of $1.07 per share on revenue of $5.5 billion. Analysts expected earnings of $1.09 per share on revenue of $5.56B.
Charles Schwab shares are currently down 3.9%.
Despite the slide in profits, it still remains near record levels, as the company benefits from increased interest rates.
"While we are proud of the firm's success thus far, we believe there is tremendous opportunity still ahead of us and we are excited to keep striving to deliver value for all of our key stakeholders – clients, employees, and owners," commented Charles Schwab Co-Chairman and CEO Walt Bettinger.
The company's CFO, Peter Crawford, stated: "Schwab's record financial performance in 2022 highlighted the resiliency of our diversified financial model. Sustained business momentum through an uneven macroeconomic environment helped drive 12% growth in total net revenues."
"Net interest revenue reached $10.7 billion, an increase of 33% versus the prior year, as higher interest rates more than offset the impact of balance sheet contraction due to client cash sorting."