Charles Schwab Corporation, (SCHW), misses Q4 earnings and revenue estimates
Charles Schwab Corporation (SCHW), reported quarterly earnings of $1.07 per shares, which was below the Zacks Consensus Estimate ($1.10 per share). This compares with earnings of $0.86 a year ago. These figures include non-recurring expenses.
This quarterly report shows an earnings surprise at -2.73% This company was expecting earnings of $1.05 per stock quarter ago. Instead, earnings were actually $1.10 per share. That’s a surprise of 4.76%.
In the past four quarters, the company has exceeded consensus EPS estimates twice.
Charles Schwab Corporation, which is part of the Zacks Financial-Investment Bank industry, reported revenues of $5.5 Billion for the quarter ending December 2022. This was lower than the Zacks Consensus Estimate of 1.13%. This is compared to the $4.71 billion in revenues year-ago. Over the past four quarters, the company has exceeded consensus revenue estimates twice.
Based on the most recent numbers, the sustainability of the stock’s price movement and future earnings expectations will largely depend on management’s comments on the earnings call.
The Charles Schwab Corporation shares have added about 0.3% since the beginning of the year versus the S&P 500’s gain of 3.9%.
What’s next for the Charles Schwab Corporation?
Although The Charles Schwab Corporation has outperformed the market this year, investors are left wondering: What’s next?
Although there aren’t easy answers to this question, one reliable indicator that investors can use is the company’s earnings outlook. This includes current consensus earnings estimates for the next quarter(s), as well as how they have changed in recent months.
Empirical research has shown a strong correlation between near term stock movements and trends of earnings estimate revisions. Investors can track such revisions themselves, or rely on a trusted rating tool like Zacks Rank. It has a long track record of harnessing earnings estimate revisions’ power.
The trend in estimate revisions is mixed for The Charles Schwab Corporation ahead of this earnings report. The company’s earnings report could have an impact on the direction and magnitude of the estimate revisions, but the current Zacks rank for the stock is #3 (Hold). In the short term, the stock is expected to perform in line the market. The complete Zacks #1 Rank (Strong buy) stock list can be found here.
It will be interesting, in the days to come, to see how estimates change for the next quarters as well as the current fiscal years. Current consensus EPS estimates are $1.14 for $5.75 billion in revenue for the next quarter and $4.80 for $23.33 billion for the current fiscal.
Investors should consider the possibility that the outlook in the industry could have an impact on the stock’s performance. Financial – Investment Bank ranks among the top 11% of all 250 plus Zacks industry ranked. Our research shows that the top 50 percent of Zacks-ranked industries perform better than the bottom half by a factor greater than 2.
Piper Sandler Companies’ (PIPR) is another stock from the same industry that has not reported its results for the quarter ended Dec 2022.
The company expects to report quarterly earnings of $2.21 per shares in its next report. This is a change of -71.8% year-over-year. To get to the current level, the consensus EPS estimate for this quarter was revised 1.1% below the previous 30 days.
Piper Sandler Companies’ revenues will be $344.35million, down 46.9% over the year-ago quarter.
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The Charles Schwab Corporation (SCHW) : Free Stock Analysis Report
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