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The Charles Schwab Corporation (SCHW) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
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For the quarter ended September 2023, The Charles Schwab Corporation (SCHW - Free Report) reported revenue of $4.61 billion, down 16.3% over the same period last year. EPS came in at $0.77, compared to $1.10 in the year-ago quarter.
The reported revenue represents a surprise of -0.79% over the Zacks Consensus Estimate of $4.64 billion. With the consensus EPS estimate being $0.75, the EPS surprise was +2.67%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
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: $7,824.5 billion versus the six-analyst average estimate of $8,044.1 billion.
Clients daily average trades - Total: 5,218 thousand versus the five-analyst average estimate of 5,264.5 thousand.
Average Interest Earning Assets: $453.76 billion compared to the $458.83 billion average estimate based on five analysts.
Net interest margin: 1.9% versus the five-analyst average estimate of 2%.
Net revenues- Net interest revenue: $2.24 billion compared to the $2.25 billion average estimate based on seven analysts. The reported number represents a change of -23.6% year over year.
Net revenues- Bank deposit account fees: $205 million compared to the $180 million average estimate based on seven analysts. The reported number represents a change of -50.4% year over year.
Net revenues- Other: $172 million compared to the $161.45 million average estimate based on seven analysts. The reported number represents a change of -6.5% year over year.
Net revenues- Asset management and administration fees: $1.22 billion versus $1.22 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +16.9% change.
Net revenues- Trading revenue: $768 million versus $808.50 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -17.4% change.
Net revenues- Asset management and administration fees- Mutual Fund OneSource and other non-transaction fee funds: $170 million compared to the $163.69 million average estimate based on three analysts. The reported number represents a change of +22.3% year over year.
Net revenues- Asset management and administration fees- Advice solutions: $476 million versus the three-analyst average estimate of $485.61 million.
Net revenues- Asset management and administration fees- Schwab equity and bond funds, ETFs and collective trust funds (CTFs): $99 million versus the three-analyst average estimate of $96.83 million.
Shares of The Charles Schwab Corporation have returned -11.8% over the past month versus the Zacks S&P 500 composite's -3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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The Charles Schwab Corporation (SCHW) Q3 Earnings: Taking a Look at Key Metrics Versus Estimates
For the quarter ended September 2023, The Charles Schwab Corporation (SCHW - Free Report) reported revenue of $4.61 billion, down 16.3% over the same period last year. EPS came in at $0.77, compared to $1.10 in the year-ago quarter.
The reported revenue represents a surprise of -0.79% over the Zacks Consensus Estimate of $4.64 billion. With the consensus EPS estimate being $0.75, the EPS surprise was +2.67%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
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: $7,824.5 billion versus the six-analyst average estimate of $8,044.1 billion.
- Clients daily average trades - Total: 5,218 thousand versus the five-analyst average estimate of 5,264.5 thousand.
- Average Interest Earning Assets: $453.76 billion compared to the $458.83 billion average estimate based on five analysts.
- Net interest margin: 1.9% versus the five-analyst average estimate of 2%.
- Net revenues- Net interest revenue: $2.24 billion compared to the $2.25 billion average estimate based on seven analysts. The reported number represents a change of -23.6% year over year.
- Net revenues- Bank deposit account fees: $205 million compared to the $180 million average estimate based on seven analysts. The reported number represents a change of -50.4% year over year.
- Net revenues- Other: $172 million compared to the $161.45 million average estimate based on seven analysts. The reported number represents a change of -6.5% year over year.
- Net revenues- Asset management and administration fees: $1.22 billion versus $1.22 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a +16.9% change.
- Net revenues- Trading revenue: $768 million versus $808.50 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -17.4% change.
- Net revenues- Asset management and administration fees- Mutual Fund OneSource and other non-transaction fee funds: $170 million compared to the $163.69 million average estimate based on three analysts. The reported number represents a change of +22.3% year over year.
- Net revenues- Asset management and administration fees- Advice solutions: $476 million versus the three-analyst average estimate of $485.61 million.
- Net revenues- Asset management and administration fees- Schwab equity and bond funds, ETFs and collective trust funds (CTFs): $99 million versus the three-analyst average estimate of $96.83 million.
View all Key Company Metrics for The Charles Schwab Corporation here>>>Shares of The Charles Schwab Corporation have returned -11.8% over the past month versus the Zacks S&P 500 composite's -3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.