WS #15933
Charles Schwab reported an EPS beat of $1.69 but missed revenue estimates at $7.17B, causing shares to slip pre-market. This underperformance comes as BlackRock CEO Larry Fink warns that US rates will stay high, threatening the net interest margins that have powered financials. The combination of a specific company miss and a broad macro warning dampens the bullish outlook for the financial sector, particularly for brokerages and wealth management firms reliant on high-yield cash balances.
Schwab Revenue Miss and Rate Concerns
Charles Schwab reported an EPS beat of $1.69 but missed revenue estimates at $7.17B, causing shares to slip pre-market. This underperformance comes as BlackRock CEO Larry Fink warns that US rates will stay high, threatening the net interest margins that have powered financials. The combination of a specific company miss and a broad macro warning dampens the bullish outlook for the financial sector, particularly for brokerages and wealth management firms reliant on high-yield cash balances.