Why did SCHW's Q3 2024 earnings outperform?

The Charles Schwab Corporation (SCHW) reported Q3 2024 earnings that outperformed expectations due to several key factors:

1. **Healthy Investor Engagement**: Management attributed the revenue growth to "healthy investor engagement across Schwab’s modern wealth platform and the continued slowing of rate-related client cash realignment activity." This indicates that investors are actively participating in the market, which has positively impacted Schwab's financial performance.
2. **Net New Asset Growth**: Schwab reported net new asset growth of $32.8 billion in August, which is $4.9 billion more than the previous year. This increase in net new assets suggests that clients are investing more money with Schwab, contributing to higher revenues.
3. **Favorable Market Conditions**: The company expects total revenues to rise 2-3% sequentially, driven by favorable market conditions. This expectation reflects confidence in continued growth and profitability.

In summary, SCHW's Q3 2024 earnings outperformance can be attributed to healthy investor engagement, net new asset growth, and favorable market conditions. These factors collectively contribute to the company's robust financial performance and higher revenues.

|code|Ticker|Name|Date|Total Revenue|Diluted EPS|market_code|
|---|---|---|---|---|---|---|
|SCHW|SCHW.N|The Charles Schwab|2023 Q4|4.459E9|0.51|169|
|SCHW|SCHW.N|The Charles Schwab|2024 Q1|4.74E9|0.68|169|
|SCHW|SCHW.N|The Charles Schwab|2024 Q2|4.69E9|0.66|169|
|SCHW|SCHW.N|The Charles Schwab|2024 Q3|4.847E9|0.71|169|