Written by StockNews.com

Charles Schwab Corp (NYSE: SCHW) early Tuesday posted market-beating first quarter earnings results, as recent changes to its brokerage fees began to pay off handsomely.

The San Francisco-based investment broker reported:

• Q1 earnings per share (EPS) of $0.39, which was $0.03 better than the Wall Street consensus estimate of $0.36.
• Revenues rose 18.0% from last year to $2.08 billion, also topping analysts’ view for $2.06 billion...
• Q1 new retail brokerage accounts totaled 235,000, up to a whopping 44% from last year.
• Total accounts at the end of the quarter were 7.2 million, up 4% year-over-year...
• Net new assets across the company’s units jumped 22% to $39 billion and
•  total client assets gained 14% from last year to $2.92 trillion.

The company commented on its recent fee changes that helped drive growth via press release:

“We know that operating “through clients’ eyes” requires a sustained commitment to investing in our business. We believe those investments must include not only the people needed to serve clients and run the company, as well as the technology and infrastructure to support a better investing experience, but also the products, services, and value clients seek to help pursue their investing goals.

During February, we announced strategic pricing moves to deliver significantly more value to all clients – regardless of the amount they have to invest. We lowered equity and options trade commissions from $8.95 to $4.95, dropped the per contract option fee to $0.65, and introduced a broad-reaching Satisfaction Guarantee, which is unique among brokerage firms.”

...Year-to-date, SCHW had declined -0.94% prior to today’s report, versus a 5.12% rise in the benchmark S&P 500 index during the same period.

SCHW currently has a StockNews.com POWR Rating of B (Buy) and is ranked #7 of 29 stocks in the Investment Brokerage category.