Charles Schwab (NYSE:SCHW) announced on Monday that it earned $247 million during the third quarter, up 12% from $220 million in the same period last year. EPS came in at 19 cents, up from 18 cents in 2011, and topping the 17 cents that analysts had forecasts, MarketWatch noted.
For the quarter, revenue edged up 1% to $1.18 billion. That fell just short of the $1.2 billion that analysts had estimated.
The company also announced that it will spend $85 million to purchase ThomasPartners, an asset manager based in Wellesley, Massachusetts. The acquisition is expected to close before the end of the year, the Associated Press noted.
ThomasPartners had assets under management totalling $2.3 billion at the end of the quarter. It’s CEO and CIO will remain on after the purchase.
Charles Schwab officials indicated that that adding ThomasPartners would not produce an earnings impact during the first year after the transaction is finalized.
Investors were unimpressed. Shares of Charles Schwab dipped about 1% in Monday morning