Analysts Anticipate Charles Schwab Co. (SCHW) to Post $0.68 Earnings Per Share

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Wall Street brokerages predict that Charles Schwab Co. (NYSE:SCHW) will announce $0.68 earnings per share for the current fiscal quarter, according to Zacks. Five analysts have provided estimates for Charles Schwab’s earnings, with estimates ranging from $0.66 to $0.69. Charles Schwab reported earnings of $0.60 per share in the same quarter last year, which indicates a positive year over year growth rate of 13.3%. The company is scheduled to report its next quarterly earnings report on Tuesday, July 16th.

According to Zacks, analysts expect that Charles Schwab will report full year earnings of $2.77 per share for the current year, with EPS estimates ranging from $2.72 to $2.81. For the next year, analysts expect that the company will report earnings of $2.99 per share, with EPS estimates ranging from $2.90 to $3.08. Zacks Investment Research’s EPS calculations are an average based on a survey of research analysts that cover Charles Schwab.

Charles Schwab (NYSE:SCHW) last posted its quarterly earnings data on Monday, April 15th. The financial services provider reported $0.69 earnings per share for the quarter, topping the Thomson Reuters’ consensus estimate of $0.66 by $0.03. Charles Schwab had a net margin of 35.27% and a return on equity of 20.79%. The business had revenue of $2.72 billion during the quarter, compared to analysts’ expectations of $2.67 billion. During the same quarter in the prior year, the business posted $0.55 earnings per share. Charles Schwab’s revenue was up 13.6% compared to the same quarter last year.

Several research analysts have commented on SCHW shares. Zacks Investment Research raised Charles Schwab from a “hold” rating to a “buy” rating and set a $47.00 target price for the company in a research note on Thursday, January 3rd. Wells Fargo & Co lowered their target price on Charles Schwab from $53.00 to $44.00 and set a “market perform” rating for the company in a research note on Friday, January 4th. Morgan Stanley lowered their target price on Charles Schwab from $60.00 to $55.00 and set an “overweight” rating for the company in a research note on Friday, January 4th. Wolfe Research raised Charles Schwab from an “underperform” rating to a “market perform” rating in a research note on Tuesday, January 8th. Finally, Raymond James boosted their target price on Charles Schwab from $51.00 to $54.00 and gave the stock an “outperform” rating in a research note on Wednesday, January 16th. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating and ten have given a buy rating to the company. The stock presently has an average rating of “Buy” and a consensus price target of $53.22.

NYSE SCHW traded down $0.55 during trading on Friday, hitting $45.55. 5,666,689 shares of the company’s stock were exchanged, compared to its average volume of 7,220,348. The company has a current ratio of 1.08, a quick ratio of 0.83 and a debt-to-equity ratio of 0.38. The company has a market cap of $60.77 billion, a price-to-earnings ratio of 18.59, a PEG ratio of 1.47 and a beta of 1.32. Charles Schwab has a fifty-two week low of $37.83 and a fifty-two week high of $60.22.

Charles Schwab declared that its board has initiated a stock buyback plan on Wednesday, January 30th that permits the company to repurchase $4.00 billion in shares. This repurchase authorization permits the financial services provider to buy up to 6.3% of its shares through open market purchases. Shares repurchase plans are typically a sign that the company’s board of directors believes its stock is undervalued.

In other news, Chairman Charles R. Schwab sold 250,000 shares of the company’s stock in a transaction that occurred on Friday, February 1st. The stock was sold at an average price of $47.04, for a total value of $11,760,000.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, EVP Terri R. Kallsen sold 41,285 shares of the company’s stock in a transaction that occurred on Monday, March 4th. The shares were sold at an average price of $46.75, for a total value of $1,930,073.75. The disclosure for this sale can be found here. Insiders sold 383,617 shares of company stock valued at $17,906,122 in the last ninety days. 10.90% of the stock is currently owned by insiders.

Institutional investors have recently added to or reduced their stakes in the company. Bank of New York Mellon Corp increased its position in Charles Schwab by 0.9% during the 3rd quarter. Bank of New York Mellon Corp now owns 12,675,853 shares of the financial services provider’s stock valued at $623,016,000 after purchasing an additional 108,436 shares during the period. Renaissance Technologies LLC acquired a new stake in Charles Schwab during the 3rd quarter valued at approximately $19,527,000. LPL Financial LLC increased its position in Charles Schwab by 2.1% during the 3rd quarter. LPL Financial LLC now owns 224,491 shares of the financial services provider’s stock valued at $11,034,000 after purchasing an additional 4,656 shares during the period. Capital World Investors increased its position in Charles Schwab by 110.1% during the 3rd quarter. Capital World Investors now owns 2,710,300 shares of the financial services provider’s stock valued at $133,211,000 after purchasing an additional 1,420,300 shares during the period. Finally, The Manufacturers Life Insurance Company increased its position in Charles Schwab by 3.1% during the 3rd quarter. The Manufacturers Life Insurance Company now owns 1,835,645 shares of the financial services provider’s stock valued at $90,223,000 after purchasing an additional 55,329 shares during the period. 80.07% of the stock is owned by institutional investors.

About Charles Schwab

The Charles Schwab Corporation, through its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The company operates through two segments, Investor Services and Advisor Services. The Investor Services segment provides retail brokerage and banking services, retirement plan services, and other corporate brokerage services; equity compensation plan sponsors full-service recordkeeping for stock plans, stock options, restricted stock, performance shares, and stock appreciation rights; and retail investor, retirement plan, and mutual fund clearing services.

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Earnings History and Estimates for Charles Schwab (NYSE:SCHW)

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