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Compared to Estimates, The Charles Schwab Corporation (SCHW) Q4 Earnings: A Look at Key Metrics
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The Charles Schwab Corporation (SCHW - Free Report) reported $4.46 billion in revenue for the quarter ended December 2023, representing a year-over-year decline of 18.9%. EPS of $0.68 for the same period compares to $1.07 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $4.43 billion, representing a surprise of +0.70%. The company delivered an EPS surprise of +4.62%, with the consensus EPS estimate being $0.65.
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: $8,500 billion compared to the $8,144.44 billion average estimate based on six analysts.
Net interest margin: 1.9% versus the five-analyst average estimate of 2%.
Clients daily average trades - Total: 5,192 thousand versus 5,082.9 thousand estimated by five analysts on average.
Average Interest Earning Assets: $441.34 billion versus the five-analyst average estimate of $440.94 billion.
Net revenues- Other: $147 million versus $159.67 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -15.5% change.
Net revenues- Bank deposit account fees: $174 million versus $181.44 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -50.3% change.
Net revenues- Net interest revenue: $2.13 billion versus the seven-analyst average estimate of $2.13 billion. The reported number represents a year-over-year change of -29.7%.
Net revenues- Asset management and administration fees: $1.24 billion compared to the $1.26 billion average estimate based on seven analysts. The reported number represents a change of +18.3% year over year.
Net revenues- Trading revenue: $767 million versus the seven-analyst average estimate of $737.90 million. The reported number represents a year-over-year change of -14.3%.
Net revenues- Asset management and administration fees- Schwab money market funds: $299 million versus $293.65 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +88.1% change.
Net revenues- Asset management and administration fees- Schwab equity and bond funds, ETFs and collective trust funds (CTFs): $98 million versus the three-analyst average estimate of $96.99 million. The reported number represents a year-over-year change of +14%.
Net revenues- Asset management and administration fees- Mutual Fund OneSource and other non-transaction fee funds: $188 million compared to the $186.36 million average estimate based on three analysts. The reported number represents a change of +26.2% year over year.
Shares of The Charles Schwab Corporation have returned -7.8% over the past month versus the Zacks S&P 500 composite's +1.2% 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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Compared to Estimates, The Charles Schwab Corporation (SCHW) Q4 Earnings: A Look at Key Metrics
The Charles Schwab Corporation (SCHW - Free Report) reported $4.46 billion in revenue for the quarter ended December 2023, representing a year-over-year decline of 18.9%. EPS of $0.68 for the same period compares to $1.07 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $4.43 billion, representing a surprise of +0.70%. The company delivered an EPS surprise of +4.62%, with the consensus EPS estimate being $0.65.
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: $8,500 billion compared to the $8,144.44 billion average estimate based on six analysts.
- Net interest margin: 1.9% versus the five-analyst average estimate of 2%.
- Clients daily average trades - Total: 5,192 thousand versus 5,082.9 thousand estimated by five analysts on average.
- Average Interest Earning Assets: $441.34 billion versus the five-analyst average estimate of $440.94 billion.
- Net revenues- Other: $147 million versus $159.67 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -15.5% change.
- Net revenues- Bank deposit account fees: $174 million versus $181.44 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -50.3% change.
- Net revenues- Net interest revenue: $2.13 billion versus the seven-analyst average estimate of $2.13 billion. The reported number represents a year-over-year change of -29.7%.
- Net revenues- Asset management and administration fees: $1.24 billion compared to the $1.26 billion average estimate based on seven analysts. The reported number represents a change of +18.3% year over year.
- Net revenues- Trading revenue: $767 million versus the seven-analyst average estimate of $737.90 million. The reported number represents a year-over-year change of -14.3%.
- Net revenues- Asset management and administration fees- Schwab money market funds: $299 million versus $293.65 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +88.1% change.
- Net revenues- Asset management and administration fees- Schwab equity and bond funds, ETFs and collective trust funds (CTFs): $98 million versus the three-analyst average estimate of $96.99 million. The reported number represents a year-over-year change of +14%.
- Net revenues- Asset management and administration fees- Mutual Fund OneSource and other non-transaction fee funds: $188 million compared to the $186.36 million average estimate based on three analysts. The reported number represents a change of +26.2% year over year.
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 +1.2% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.