Earnings Performance - The company reported quarterly earnings of $0.77 per share, beating the Zacks Consensus Estimate of $0.75 per share, representing a 2.67% earnings surprise [1] - This compares to earnings of $0.77 per share a year ago, with figures adjusted for non-recurring items [1] - Over the last four quarters, the company has surpassed consensus EPS estimates three times [1] Revenue Performance - The company posted revenues of $4.85 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 0.95% [1] - This compares to year-ago revenues of $4.61 billion [1] - The company has topped consensus revenue estimates three times over the last four quarters [1] Stock Performance - The company's shares have lost about 1.4% since the beginning of the year, underperforming the S&P 500's gain of 22.9% [2] - The stock is currently rated Zacks Rank 3 (Hold), indicating it is expected to perform in line with the market in the near future [4] Future Outlook - The current consensus EPS estimate is $0.83 on $4.99 billion in revenues for the coming quarter and $3.06 on $19.22 billion in revenues for the current fiscal year [4] - The estimate revisions trend for the company is mixed, with potential changes following the latest earnings report [4] Industry Context - The company belongs to the Zacks Financial - Investment Bank industry, which is currently in the top 30% of the 250 plus Zacks industries [5] - The top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [5] Peer Comparison - Robinhood Markets, Inc (HOOD), another company in the same industry, is expected to report quarterly earnings of $0.19 per share, representing a year-over-year change of +311.1% [5] - The consensus EPS estimate for Robinhood has been revised 1.4% lower over the last 30 days [5] - Robinhood's revenues are expected to be $671.73 million, up 43.8% from the year-ago quarter [6]

Schwab Could Earn Billions From Alternative Investments. Clients Should Think Twice. ...

Wall Street analysts expect The Charles Schwab Corporation (SCHW) to post quarterly earnings of $0.75 per share in its upcoming report, which indicates a year-over-year decline of 2.6%. Revenues are expected to be $4.8 billion, up 4.3% from the year-ago quarter.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.2% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Prior to a compa ...

Charles Schwab (SCHW) is scheduled to report third-quarter 2024 results on Oct. 15, before the market opens. While the company’s earnings are expected to have declined on a year-over-year basis, revenues are anticipated to have improved.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.In the second quarter, Schwab’s earnings met the Zacks Consensus Estimate. Results benefited from the solid performance of the asset management business. The absence of fee waivers and solid brokerage a ...

After contributing to massive growth of the brokerage firm in the last 16 years, Charles Schwab’s (SCHW) CEO, Walt Bettinger, is ready to step down from his role. Bettinger said that he will retire from his role as the CEO by 2024-end and will be replaced by Schwab’s president Rick Wurster, who will assume the role of CEO effective Jan. 1.Bettinger mentioned, “Serving the clients, employees and stockholders of Schwab as CEO for the past 16 years has been the honor and privilege of my more than 40-year busin ...

Walt Bettinger will retire from his longtime position as Charles Schwab’s CEO at the end of 2024. The financial firm on Tuesday unveiled Bettinger’s retirement plans and linked the upcoming leadership change to its multiyear succession plan.When he leaves the position on Dec. 31, it will mark the end of Bettinger’s 16-year tenure as CEO. "As I approach my 65th birthday in 2025, the time is right for me to transition from day-to-day duties and focus on my role as Executive Co-Chairman of the Schwab Board of ...

Walter "Walt" Bettinger, president and chief executive officer of Charles Schwab Corp., speaks during the 2015 Fortune Global Forum in San Francisco, California, U.S., on Tuesday, Nov. 3, 2015.Bettinger will be replaced on Jan. 1, 2025, by Charles Schwab President Rick Wurster. Bettinger will remain as the co-chair of Schwab's board.Charles Schwab CEO Walt Bettinger is retiring from his role at the end of December after 16 years leading the brokerage firm, the company announced Tuesday.In a statement, Betti ...

Core Viewpoint - The Federal Reserve's recent interest rate cut is expected to negatively impact Charles Schwab's profitability, as the company's primary revenue source is net interest income, which thrives in a high-interest-rate environment [1][2][3]. Company Analysis - Charles Schwab's largest revenue source is interest income, accounting for nearly 50% of total revenue, which is unusual for a brokerage firm [2][3]. - The company's net interest revenue peaked in late 2022 and has since declined, with Q2 2023 net interest revenue at $2.16 billion, nearly 30% lower than the same quarter in 2022 [3][4]. - As of Q2 2023, 46% of Schwab's total revenue is derived from net interest revenue, which is affected by falling interest rates [3][4]. Market Conditions - The current economic environment is not favorable for Schwab, with inflation tightening money supply and corporate bankruptcies rising above pre-pandemic levels [6]. - New investor inflows are expected to slow as growth stocks cool off, impacting Schwab's revenue streams [6][7]. Customer Growth - Despite the challenges, Schwab has seen a 20% year-over-year increase in client assets, totaling $9.74 trillion as of August [5][6]. - While a portion of these assets may not generate immediate recurring revenue, they represent potential future monetization opportunities [6]. Long-term Outlook - Schwab is considered a solid long-term holding, but the near-term outlook appears bleak, suggesting that less patient investors may want to explore other options [7].

Charles Schwab Corp. (SCHW) remains well-positioned for growth, driven by higher rates, opportunistic acquisitions and rising client assets. However, a mounting expense base and subdued trading revenues are worrisome.Tailwinds for SchwabHigh Interest Rates to Aid Net Interest Margin: Schwab’s net interest margin (NIM) is likely to improve in the near term, supported by the existing high-interest rate scenario. The company’s NIM expanded to 1.98% in 2023 from 1.78% in 2022 and 1.45% in 2021 on account of hig ...

Shares of Charles Schwab (SCHW) have gained 2.5% in response to upbeat revenue guidance for the third quarter of 2024. The company also posted an increase in total client assets for August.Favorable Q3 TrendsManagement expects total revenues to rise 2-3% sequentially, driven by “healthy investor engagement across Schwab’s modern wealth platform and the continued slowing of rate-related client cash realignment activity.” Further, the adjusted pre-tax profit margin is projected to be at least 40% in the ongoi ...