Analysts expect Charles Schwab to report strong earnings and revenue growth in Q4
San Francisco: Wall Street analysts are buzzing about Charles Schwab’s upcoming earnings report. They predict the company will announce earnings of $0.90 per share, which is a solid 32.4% increase from last year. Revenue is expected to hit around $5.18 billion, marking a 16.2% rise compared to the same quarter last year.
In the last month, analysts have bumped up their earnings estimates by about 2.7%. This shows they’re feeling more optimistic about how Schwab has performed recently. It’s always interesting to see how these estimates change as the earnings date approaches.
When a company is about to release its earnings, it’s important to pay attention to any changes in these estimates. They can really influence how investors react to the stock. Studies have shown that when earnings estimates go up, the stock price often follows suit in the short term.
While many investors look at the overall earnings and revenue numbers, digging into the specific metrics that analysts are forecasting can provide some valuable insights. So, let’s take a closer look at what Wall Street is predicting for Schwab.
Analysts are estimating that ‘Net revenues- Other’ will come in at $180.22 million, which is a 22.6% increase from last year. For ‘Net revenues- Bank deposit account fees,’ they expect $205.69 million, an 18.2% rise.
They also predict ‘Net revenues- Net interest revenue’ will reach $2.43 billion, up 14% from the previous year. For ‘Net revenues- Asset management and administration fees,’ the estimate is $1.52 billion, reflecting a 22.5% increase.
Looking at total client assets, analysts expect it to be around $10,039.14 billion, compared to $8,500 billion last year. They also think the average daily trades will hit 5.94 million, up from 5.19 million a year ago.
As for ‘Average Interest Earning Assets,’ the estimate is $426.77 billion, down from $441.34 billion last year. Analysts believe ‘Average Client Assets – Total advice Solutions’ will be about $673.06 million, up from $563.95 million last year.
For ‘Average Client Assets – Mutual Fund OneSource and other non-transaction fee funds,’ they expect $362.83 million, compared to $289.84 million last year. The estimate for ‘Average Client Assets – Schwab equity and bond funds, ETFs and collective trust funds (CTFs)’ is $643.55 million, up from $486.34 million.
They also predict ‘Average Client Assets – Schwab money market funds’ will be around $577.99 million, compared to $461.09 million last year. Lastly, they expect ‘Net new client assets’ to reach $166.43 billion, a significant jump from $66.3 billion last year.
In the past month, Schwab’s shares have dipped slightly by 0.4%, while the S&P 500 has dropped by 3.3%. With a Zacks Rank of #2 (Buy), analysts believe Schwab is set to outperform the market soon.
