We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
The Charles Schwab Corporation (SCHW) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
Read MoreHide Full Article
For the quarter ended June 2023, The Charles Schwab Corporation (SCHW - Free Report) reported revenue of $4.66 billion, down 8.6% over the same period last year. EPS came in at $0.75, compared to $0.97 in the year-ago quarter.
The reported revenue represents a surprise of +0.97% over the Zacks Consensus Estimate of $4.61 billion. With the consensus EPS estimate being $0.72, the EPS surprise was +4.17%.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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: $8015.8 billion versus $7477.9 billion estimated by six analysts on average.
Average Interest Earning Assets: $485.5 billion versus $505.8 billion estimated by five analysts on average.
Net interest margin: 1.87% versus the five-analyst average estimate of 1.88%.
Clients daily average trades - Total: 5272 thousand versus the five-analyst average estimate of 5291.51 thousand.
Net revenues- Asset management and administration fees: $1.17 billion versus the seven-analyst average estimate of $1.15 billion. The reported number represents a year-over-year change of +11.5%.
Net revenues- Other: $215 million versus the seven-analyst average estimate of $201.49 million. The reported number represents a year-over-year change of -17.3%.
Net revenues- Trading revenue: $803 million compared to the $791.34 million average estimate based on seven analysts. The reported number represents a change of -9.3% year over year.
Net revenues- Bank deposit account fees: $175 million compared to the $166.05 million average estimate based on seven analysts. The reported number represents a change of -50.3% year over year.
Net revenues- Net interest revenue: $2.29 billion versus the seven-analyst average estimate of $2.34 billion. The reported number represents a year-over-year change of -10%.
Net revenues- Asset management and administration fees- Mutual Fund OneSource and other non-transaction fee funds: $151 million versus $161.95 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -23.2% change.
Net revenues- Asset management and administration fees- Schwab equity and bond funds, ETFs and collective trust funds (CTFs): $94 million versus $94.63 million estimated by two analysts on average.
Net revenues- Asset management and administration fees- Schwab money market funds: $252 million versus the two-analyst average estimate of $251.47 million.
Shares of The Charles Schwab Corporation have returned +7.8% over the past month versus the Zacks S&P 500 composite's +2.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
The Charles Schwab Corporation (SCHW) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended June 2023, The Charles Schwab Corporation (SCHW - Free Report) reported revenue of $4.66 billion, down 8.6% over the same period last year. EPS came in at $0.75, compared to $0.97 in the year-ago quarter.
The reported revenue represents a surprise of +0.97% over the Zacks Consensus Estimate of $4.61 billion. With the consensus EPS estimate being $0.72, the EPS surprise was +4.17%.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
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: $8015.8 billion versus $7477.9 billion estimated by six analysts on average.
- Average Interest Earning Assets: $485.5 billion versus $505.8 billion estimated by five analysts on average.
- Net interest margin: 1.87% versus the five-analyst average estimate of 1.88%.
- Clients daily average trades - Total: 5272 thousand versus the five-analyst average estimate of 5291.51 thousand.
- Net revenues- Asset management and administration fees: $1.17 billion versus the seven-analyst average estimate of $1.15 billion. The reported number represents a year-over-year change of +11.5%.
- Net revenues- Other: $215 million versus the seven-analyst average estimate of $201.49 million. The reported number represents a year-over-year change of -17.3%.
- Net revenues- Trading revenue: $803 million compared to the $791.34 million average estimate based on seven analysts. The reported number represents a change of -9.3% year over year.
- Net revenues- Bank deposit account fees: $175 million compared to the $166.05 million average estimate based on seven analysts. The reported number represents a change of -50.3% year over year.
- Net revenues- Net interest revenue: $2.29 billion versus the seven-analyst average estimate of $2.34 billion. The reported number represents a year-over-year change of -10%.
- Net revenues- Asset management and administration fees- Mutual Fund OneSource and other non-transaction fee funds: $151 million versus $161.95 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -23.2% change.
- Net revenues- Asset management and administration fees- Schwab equity and bond funds, ETFs and collective trust funds (CTFs): $94 million versus $94.63 million estimated by two analysts on average.
- Net revenues- Asset management and administration fees- Schwab money market funds: $252 million versus the two-analyst average estimate of $251.47 million.
View all Key Company Metrics for The Charles Schwab Corporation here>>>Shares of The Charles Schwab Corporation have returned +7.8% over the past month versus the Zacks S&P 500 composite's +2.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.