Why did SCHW's Q3 earnings exceed expectations?

Charles Schwab's Q3 earnings exceeded expectations due to several key factors: 1. **Strong Revenue Performance**: Charles Schwab reported adjusted earnings per share (EPS) of $0.77 for Q3, which topped the average analyst estimate of $0.75. This indicates a robust revenue stream that surpassed market expectations. 2. **Net Interest Income Improvement**: Key metrics for Charles Schwab showed improvement in net interest income, which is a critical component of its earnings. This improvement contributed to the overall positive earnings surprise. 3. **Expense Management**: The company's ability to manage expenses effectively likely played a role in its strong earnings. Charles Schwab reported a 49% year-over-year jump in adjusted earnings, which suggests efficient cost management relative to its revenue growth. In summary, Charles Schwab's Q3 earnings exceeded expectations due to strong revenue performance, improvement in net interest income, and effective expense management. These factors combined to deliver robust financial results that surpassed market expectations.