J.P. Morgan Impressed With Charles Schwab Earnings

According to J.P. Morgan, Charles Schwab SCHW earning impress with higher NIM and lower expenses. J.P. Morgan reported that Schwab reported 1Q11 EPS of $0.20, beating estimates. “The results were better than expected, largely driven by higher than expected NIM and better than modeled noncomp expenses. We maintain our OW rating, and raise our 2011 EPS by $0.02 ($0.05 including the $0.03 beat in 1Q11) and 2012 estimates by $0.01 based on current performance. We continue to see significant upside for those who can hold until interest rates normalize.” Charles Schwab closed yesterday at $18.61.