Schwab Warns on 2Q Earnings
SAN FRANCISCO (AP) _ Charles Schwab Corp., one of the nation’s largest online discount brokers, said it likely will not meet second-quarter earning estimates because of a sharp decline in trading volume.
``With the trading level we have seen in the first eight days of trading (in June) it would be difficult to envision we would meet those estimates,″ Schwab spokesman Greg Gabler said Friday.
Schwab saw an average of 132,000 trades a day in June. If that pace holds, it would be down 20 percent from May. The company averaged 166,000 trades in May, down 6 percent from April.
``The decline reflects a certain discomfort that the investors still have with the markets,″ Gabler said.
A consensus of analysts surveyed by Thomson Financial/First Call had expected second-quarter earnings of 9 cents a share. That figure was lowered to 8 cents per share.
In March, the company announced it would lay off up to 13 percent of its work force, or about 3,400 jobs. About 2,600 employees have been laid off so far.
Shares of Schwab declined 36 cents to close at $15.67 in trading Friday, adding to a 7.6 percent drop on Thursday.