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Schwab (SCHW) Meets Q4 Earnings Estimates, Revenues Lag
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Have you been eager to see how The Charles Schwab Corporation (SCHW - Free Report) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this San Francisco-based brokerage company’s earnings release this morning:
In Line Earnings
Schwab came out with adjusted earnings per share of 36 cents in line with the Zacks Consensus Estimate.
A rise in revenues was offset by higher costs.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for Schwab depicted a bullish trend prior to the earnings release. The Zacks Consensus Estimate revised 2.9% upward to 36 cents per share over the last 30 days.
Further, Schwab has delivered positive surprises in one of the prior four trailing quarters. Overall, the company has a positive earnings surprise of 0.8% in the trailing four quarters.
The Charles Schwab Corporation Price, Consensus and EPS Surprise
Schwab posted net revenues of $1.97 billion, which lagged the Zacks Consensus Estimate of $1.98 billion. Also, it compared favorably with the year-ago number of $1.69 billion.
Key Statistics:
A steady focus on serving investor needs has helped Schwab’s business grow to $2.78 trillion in client assets as of Dec 31, 2016.
The company gathered $125.5 billion of core net new assets in 2016.
Increase in interest-earning assets by 22% during 2016 to $216 billion as of Dec 31, 2016
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #2 (Buy) for Schwab. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.
Following the earnings release, Schwab shares were down nearly 1% in the pre-trading session. This is in line with what the stock witnessed in the prior-day’s session. Clearly, the initial reaction shows that the investors have not considered the results in their favor. However, the full-session’s price movement may indicate a different picture.
Check back later for our full write up on this Schwab earnings report!
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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Schwab (SCHW) Meets Q4 Earnings Estimates, Revenues Lag
Have you been eager to see how The Charles Schwab Corporation (SCHW - Free Report) performed in Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this San Francisco-based brokerage company’s earnings release this morning:
In Line Earnings
Schwab came out with adjusted earnings per share of 36 cents in line with the Zacks Consensus Estimate.
A rise in revenues was offset by higher costs.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for Schwab depicted a bullish trend prior to the earnings release. The Zacks Consensus Estimate revised 2.9% upward to 36 cents per share over the last 30 days.
Further, Schwab has delivered positive surprises in one of the prior four trailing quarters. Overall, the company has a positive earnings surprise of 0.8% in the trailing four quarters.
The Charles Schwab Corporation Price, Consensus and EPS Surprise
The Charles Schwab Corporation Price, Consensus and EPS Surprise | The Charles Schwab Corporation Quote
Revenue Came In Lower Than Expected
Schwab posted net revenues of $1.97 billion, which lagged the Zacks Consensus Estimate of $1.98 billion. Also, it compared favorably with the year-ago number of $1.69 billion.
Key Statistics:
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #2 (Buy) for Schwab. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.
(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)
How the Market Reacted So Far
Following the earnings release, Schwab shares were down nearly 1% in the pre-trading session. This is in line with what the stock witnessed in the prior-day’s session. Clearly, the initial reaction shows that the investors have not considered the results in their favor. However, the full-session’s price movement may indicate a different picture.
Check back later for our full write up on this Schwab earnings report!
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>