Charles Schwab(US:SCHW) ZACKS·2025-10-13 14:11Core Insights - Charles Schwab (SCHW) is expected to report strong third-quarter 2025 results on October 16, with significant year-over-year growth in earnings and revenues [1][11] - The company has a history of exceeding earnings estimates, with an average surprise of 5.87% over the last four quarters [2] Trading Revenues - Client activity was robust in Q3, driven by market volatility and changes in Federal Reserve policies, leading to strong year-over-year growth in core net new assets and an increase in new brokerage accounts [3] - Trading revenues are estimated at $895.7 million, reflecting a 12.4% increase from the previous year, with a more optimistic projection of $923.4 million [4] Net Interest Revenues (NIR) - The average interest-earning assets for the quarter are expected to be stable at $419.4 billion, with a projection of $426.4 billion [5] - Despite a recent interest rate cut by the Fed, NIR is anticipated to rise by 31.8% to $2.92 billion, with a more conservative estimate of $2.87 billion [6] Asset Management and Administration Fees - Strong equity market performance is likely to boost asset management and administration fees, with a consensus estimate of $1.63 billion, indicating a 10.2% growth, while projections suggest a rise to $1.64 billion [7] Expenses - Operating expenses are expected to increase due to regulatory spending, marketing, and branch expansion efforts, with total expenses projected at $3.05 billion, up 1.4% from the prior year [8][9] Earnings and Sales Estimates - The Zacks Consensus Estimate for earnings has been revised upward by nearly 1% to $1.22 per share, indicating a substantial 58.4% increase year-over-year [14] - The consensus estimate for sales stands at $5.91 billion, suggesting a 22% increase [14] Earnings ESP and Zacks Rank - The Earnings ESP for Schwab is +1.93%, indicating a high likelihood of beating the consensus estimate [12] - The company currently holds a Zacks Rank of 3 (Hold) [13]