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The Charles Schwab Corporation (SCHW) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
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The Charles Schwab Corporation (SCHW - Free Report) reported $5.12 billion in revenue for the quarter ended March 2023, representing a year-over-year increase of 9.5%. EPS of $0.93 for the same period compares to $0.77 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $5.18 billion, representing a surprise of -1.15%. The company delivered an EPS surprise of +3.33%, with the consensus EPS estimate being $0.90.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how The Charles Schwab Corporation performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Total client assets: $7580 billion versus $7381.1 billion estimated by six analysts on average.
Net new client assets: $150.7 billion versus $117 billion estimated by five analysts on average.
Net interest margin: 2.19% versus the five-analyst average estimate of 2.28%.
Clients daily average trades - Total: 5895 thousand versus 5867.82 thousand estimated by five analysts on average.
Active brokerage accounts: 34120 thousand versus 33789.34 thousand estimated by four analysts on average.
Average Interest Earning Assets: $504.6 billion versus the four-analyst average estimate of $502.6 billion.
Client assets - Schwab One other cash equivalents and deposits from banking clients: $408.5 billion versus $418.4 billion estimated by three analysts on average.
Net revenues- Net interest revenue: $2.77 billion compared to the $2.79 billion average estimate based on seven analysts. The reported number represents a change of +26.9% year over year.
Net revenues- Bank deposit account fees: $151 million versus $230.57 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -48.6% change.
Net revenues- Asset management and administration fees: $1.12 billion versus $1.09 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +4.7% change.
Net revenues- Other: $185 million versus the seven-analyst average estimate of $146.03 million. The reported number represents a year-over-year change of +12.8%.
Net revenues- Trading revenue: $892 million compared to the $915.83 million average estimate based on seven analysts. The reported number represents a change of -7.4% year over year.
Shares of The Charles Schwab Corporation have returned -10% over the past month versus the Zacks S&P 500 composite's +5.7% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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The Charles Schwab Corporation (SCHW) Q1 Earnings: Taking a Look at Key Metrics Versus Estimates
The Charles Schwab Corporation (SCHW - Free Report) reported $5.12 billion in revenue for the quarter ended March 2023, representing a year-over-year increase of 9.5%. EPS of $0.93 for the same period compares to $0.77 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $5.18 billion, representing a surprise of -1.15%. The company delivered an EPS surprise of +3.33%, with the consensus EPS estimate being $0.90.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how The Charles Schwab Corporation performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Total client assets: $7580 billion versus $7381.1 billion estimated by six analysts on average.
- Net new client assets: $150.7 billion versus $117 billion estimated by five analysts on average.
- Net interest margin: 2.19% versus the five-analyst average estimate of 2.28%.
- Clients daily average trades - Total: 5895 thousand versus 5867.82 thousand estimated by five analysts on average.
- Active brokerage accounts: 34120 thousand versus 33789.34 thousand estimated by four analysts on average.
- Average Interest Earning Assets: $504.6 billion versus the four-analyst average estimate of $502.6 billion.
- Client assets - Schwab One other cash equivalents and deposits from banking clients: $408.5 billion versus $418.4 billion estimated by three analysts on average.
- Net revenues- Net interest revenue: $2.77 billion compared to the $2.79 billion average estimate based on seven analysts. The reported number represents a change of +26.9% year over year.
- Net revenues- Bank deposit account fees: $151 million versus $230.57 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -48.6% change.
- Net revenues- Asset management and administration fees: $1.12 billion versus $1.09 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +4.7% change.
- Net revenues- Other: $185 million versus the seven-analyst average estimate of $146.03 million. The reported number represents a year-over-year change of +12.8%.
- Net revenues- Trading revenue: $892 million compared to the $915.83 million average estimate based on seven analysts. The reported number represents a change of -7.4% year over year.
View all Key Company Metrics for The Charles Schwab Corporation here>>>Shares of The Charles Schwab Corporation have returned -10% over the past month versus the Zacks S&P 500 composite's +5.7% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.