Charles Schwab Q3 revenue up 17%, slightly misses estimates

By Reuters News


Overview

  • US financial services firm's Q3 revenue rose 17% yr/yr, slightly missing analyst expectations

  • Adjusted EPS for Q3 rose 29% and beat analyst expectations

  • Company repurchased $0.5 bln in stock during the quarter


Outlook

  • Company did not provide specific financial guidance for the current qtr or full yr


Result Drivers

  • CLIENT ASSET GROWTH - Schwab said record net new assets of $190.4 bln and 1.2 mln new brokerage accounts drove results

  • CLIENT ENGAGEMENT - Co attributed deeper client engagement and increased use of wealth and asset management solutions to revenue growth

  • TRADING ACTIVITY - Higher trading volumes contributed to revenue, with daily average trading volume up 44% yr/yr


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Miss*

$7.17 bln

$7.19 bln (16 Analysts)

Q3 Adjusted EPS

Beat

$1.69

$1.66 (21 Analysts)

Q3 EPS

$1.62

Q3 Net Income

$2.9 bln

Q3 Net Interest Margin

3.04%

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 20 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell"

  • The average consensus recommendation for the investment banking & brokerage services peer group is "buy"

  • Wall Street's median 12-month price target for The Charles Schwab Corporation is $122.00, about 26% above its October 14 closing price of $96.80

  • The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago


Reuters Recommended Reads

  • Oct 14 - US banks post solid third-quarter loan growth, but face more competition for deposits

  • Oct 14 - BlackRock draws $205 billion in client funds as quarterly profit beats estimates

  • Oct 14 - BofA misses profit estimates on trading weakness, books $1.2 billion charge


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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