Why Charles Schwab (SCHW) is Poised to Beat Earnings Estimates Again

Core Viewpoint - Charles Schwab Corporation (SCHW) has a strong track record of exceeding earnings estimates and is well-positioned for continued success in upcoming quarterly reports [1]. Earnings Performance - In the last reported quarter, Charles Schwab achieved earnings of $1.31 per share, surpassing the Zacks Consensus Estimate of $1.24 per share, resulting in a surprise of 5.65% [2]. - For the previous quarter, the company was expected to report earnings of $1.09 per share but delivered $1.14 per share, yielding a surprise of 4.59% [2]. Earnings Estimates - There has been a favorable shift in earnings estimates for Charles Schwab, with a positive Zacks Earnings ESP (Expected Surprise Prediction), indicating a strong likelihood of an earnings beat [5]. - The current Earnings ESP for Charles Schwab is +3.98%, reflecting recent bullish sentiment from analysts regarding the company's earnings prospects [8]. Predictive Metrics - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [6]. - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate being more reflective of recent analyst revisions [7].