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Charles Schwab (SCHW) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
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The Charles Schwab Corporation (SCHW - Free Report) reported $4.69 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 0.7%. EPS of $0.73 for the same period compares to $0.75 a year ago.
The reported revenue represents a surprise of -0.02% over the Zacks Consensus Estimate of $4.69 billion. With the consensus EPS estimate being $0.73, the company has not delivered EPS surprise.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Charles Schwab performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Total client assets: $9,407.5 billion versus the six-analyst average estimate of $9,275.55 billion.
Net interest margin: 2% versus 2.1% estimated by five analysts on average.
Clients daily average trades - Total: 5,486 thousand versus the five-analyst average estimate of 5,587.38 thousand.
Average Interest Earning Assets: $418.97 billion versus the five-analyst average estimate of $422.29 billion.
Net revenues- Other: $219 million versus the seven-analyst average estimate of $189.90 million. The reported number represents a year-over-year change of +1.9%.
Net revenues- Bank deposit account fees: $153 million versus the seven-analyst average estimate of $166.90 million. The reported number represents a year-over-year change of -12.6%.
Net revenues- Net interest revenue: $2.16 billion versus $2.19 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -5.8% change.
Net revenues- Asset management and administration fees: $1.38 billion compared to the $1.40 billion average estimate based on seven analysts. The reported number represents a change of +17.9% year over year.
Net revenues- Trading revenue: $777 million versus $782.02 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -3.2% change.
Net revenues- Asset management and administration fees- Schwab money market funds: $357 million versus the three-analyst average estimate of $346.55 million. The reported number represents a year-over-year change of +41.7%.
Net revenues- Asset management and administration fees- Schwab equity and bond funds, ETFs and collective trust funds (CTFs): $112 million compared to the $113.69 million average estimate based on three analysts. The reported number represents a change of +19.2% year over year.
Net revenues- Asset management and administration fees- Mutual Fund OneSource and other non-transaction fee funds: $214 million versus the three-analyst average estimate of $217.55 million. The reported number represents a year-over-year change of +41.7%.
Shares of Charles Schwab have returned +3.1% over the past month versus the Zacks S&P 500 composite's +3.8% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
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Charles Schwab (SCHW) Q2 Earnings: Taking a Look at Key Metrics Versus Estimates
The Charles Schwab Corporation (SCHW - Free Report) reported $4.69 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 0.7%. EPS of $0.73 for the same period compares to $0.75 a year ago.
The reported revenue represents a surprise of -0.02% over the Zacks Consensus Estimate of $4.69 billion. With the consensus EPS estimate being $0.73, the company has not delivered EPS surprise.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Charles Schwab performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Total client assets: $9,407.5 billion versus the six-analyst average estimate of $9,275.55 billion.
- Net interest margin: 2% versus 2.1% estimated by five analysts on average.
- Clients daily average trades - Total: 5,486 thousand versus the five-analyst average estimate of 5,587.38 thousand.
- Average Interest Earning Assets: $418.97 billion versus the five-analyst average estimate of $422.29 billion.
- Net revenues- Other: $219 million versus the seven-analyst average estimate of $189.90 million. The reported number represents a year-over-year change of +1.9%.
- Net revenues- Bank deposit account fees: $153 million versus the seven-analyst average estimate of $166.90 million. The reported number represents a year-over-year change of -12.6%.
- Net revenues- Net interest revenue: $2.16 billion versus $2.19 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -5.8% change.
- Net revenues- Asset management and administration fees: $1.38 billion compared to the $1.40 billion average estimate based on seven analysts. The reported number represents a change of +17.9% year over year.
- Net revenues- Trading revenue: $777 million versus $782.02 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -3.2% change.
- Net revenues- Asset management and administration fees- Schwab money market funds: $357 million versus the three-analyst average estimate of $346.55 million. The reported number represents a year-over-year change of +41.7%.
- Net revenues- Asset management and administration fees- Schwab equity and bond funds, ETFs and collective trust funds (CTFs): $112 million compared to the $113.69 million average estimate based on three analysts. The reported number represents a change of +19.2% year over year.
- Net revenues- Asset management and administration fees- Mutual Fund OneSource and other non-transaction fee funds: $214 million versus the three-analyst average estimate of $217.55 million. The reported number represents a year-over-year change of +41.7%.
View all Key Company Metrics for Charles Schwab here>>>Shares of Charles Schwab have returned +3.1% over the past month versus the Zacks S&P 500 composite's +3.8% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.