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Schwab (SCHW) Beats on Q1 Earnings & Revenue Estimates

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Have you been eager to see how The Charles Schwab Corporation (SCHW - Free Report) performed in Q1 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:

An Earnings Beat

Schwab came out with adjusted earnings per share of 39 cents, which beat the Zacks Consensus Estimate of 37 cents.

A rise in revenues was mainly led to earnings beat.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for Schwab depicted a neutral trend prior to the earnings release. The Zacks Consensus Estimate remained stable over the last 7 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.

Revenue Came In Higher Than Expected    

Schwab posted net revenues of $2.08 billion, which was above the Zacks Consensus Estimate of $2.06 billion. Also, it compared favorably with the year-ago number of $1.76 billion.

Key Statistics:
 

  • A steady focus on serving investor needs has helped Schwab’s business grow to $2.92 trillion in client assets as of Mar 31, 2017.
  • The company gathered $38.9 billion of core net new assets in the first quarter.
  • Increase in average interest-earning assets by 21% to $216.8 billion at the end of the reported quarter
  • Fee waivers declined to $8 million from $97 million in the prior year quarter.


What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) 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 up nearly 1.7% 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 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!

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