Schwab earnings off 29%, but above expectations

Charles Schwab says its earnings fell 29 percent in the first quarter, but results easily beat Wall Street's expectations. The San Francisco-based brokerage and investment manager says it earned $218 million, or 19 cents per share, down from $305 million, or 26 cents per share, in the prior-year quarter. Total revenue is down 15 percent to $1.11 billion. “As we finish up facilities and other work relating to our recent staffing reductions, we expect to recognize approximately $40 million in additional charges for the second quarter," said Joe Martinetto, the company's chief financial officer. "With the economy and financial markets still so unsettled and no catalyst for higher rates on the horizon, revenue pressures from reduced asset valuations and low rates – including the need for significant money market fund fee waivers to provide at least a minimal level of return for our clients – may persist in future quarters." Thomson Reuters says analysts were expecting earnings of 15 cents per share on revenue of $1.07 billion.