Shares of Charles Schwab (NYSE: SCHW) rocketed 10% higher when trading opened after earnings came out this morning, and they have inched higher over the course of the day, hitting 12.4% as of 2:15 p.m. ET on Tuesday.

Analysts had forecast that Schwab would earn $0.71 per share on revenue of $4.61 billion for the second quarter, but this morning the online broker reported adjusted earnings of $0.75 per share, and revenue of $4.66 billion.  

And yet, while Schwab beat expectations on the top and bottom lines, it wasn't an unalloyed victory. Revenue wasn't as bad as feared, but it was still down 9% from the $5.1 billion reported in last year's second quarter. And the actual profit of only $0.64 per share under generally accepted accounting principles (GAAP) was significantly weaker than the adjusted (non-GAAP) earnings of $0.75.

Continue reading

Source Fool.com