Charles Schwab Co. (SCHW) Expected to Post Earnings of $0.65 Per Share

Wall Street analysts forecast that Charles Schwab Co. (NYSE:SCHW) will report earnings per share (EPS) of $0.65 for the current quarter, Zacks Investment Research reports. Five analysts have issued estimates for Charles Schwab’s earnings, with the lowest EPS estimate coming in at $0.61 and the highest estimate coming in at $0.69. Charles Schwab reported earnings per share of $0.44 in the same quarter last year, which suggests a positive year over year growth rate of 47.7%. The business is expected to issue its next earnings results on Wednesday, January 16th.

On average, analysts expect that Charles Schwab will report full year earnings of $2.45 per share for the current fiscal year, with EPS estimates ranging from $2.40 to $2.49. For the next financial year, analysts anticipate that the business will post earnings of $2.87 per share, with EPS estimates ranging from $2.70 to $2.98. Zacks’ earnings per share averages are a mean average based on a survey of sell-side analysts that follow Charles Schwab.

Charles Schwab (NYSE:SCHW) last posted its quarterly earnings results on Monday, October 15th. The financial services provider reported $0.65 EPS for the quarter, hitting the Thomson Reuters’ consensus estimate of $0.65. The business had revenue of $2.58 billion during the quarter, compared to the consensus estimate of $2.58 billion. Charles Schwab had a net margin of 32.65% and a return on equity of 19.46%. The company’s quarterly revenue was up 19.1% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.42 earnings per share.

SCHW has been the subject of several research reports. JPMorgan Chase & Co. set a $59.00 price target on shares of Charles Schwab and gave the stock a “buy” rating in a research note on Monday, July 16th. Jefferies Financial Group restated a “buy” rating and issued a $66.00 price target on shares of Charles Schwab in a research note on Monday, July 16th. Wells Fargo & Co boosted their price target on shares of Charles Schwab from $54.00 to $56.00 and gave the stock a “$54.22” rating in a research note on Wednesday, July 18th. Citigroup dropped their price target on shares of Charles Schwab from $49.00 to $48.00 and set a “sell” rating for the company in a research note on Monday, July 23rd. Finally, Morgan Stanley boosted their price target on shares of Charles Schwab from $63.00 to $65.00 and gave the stock an “overweight” rating in a research note on Wednesday, July 25th. Two equities research analysts have rated the stock with a sell rating, five have assigned a hold rating and ten have given a buy rating to the stock. Charles Schwab presently has an average rating of “Hold” and an average price target of $57.73.

In related news, EVP Jonathan M. Craig sold 2,629 shares of the business’s stock in a transaction on Monday, October 15th. The shares were sold at an average price of $48.84, for a total value of $128,400.36. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Marie A. Chandoha sold 12,400 shares of the business’s stock in a transaction on Monday, November 5th. The shares were sold at an average price of $47.18, for a total transaction of $585,032.00. The disclosure for this sale can be found here. In the last quarter, insiders have sold 39,171 shares of company stock valued at $1,921,687. Insiders own 11.50% of the company’s stock.

Institutional investors and hedge funds have recently made changes to their positions in the stock. IFG Advisory LLC raised its holdings in shares of Charles Schwab by 11.3% in the second quarter. IFG Advisory LLC now owns 10,087 shares of the financial services provider’s stock valued at $515,000 after buying an additional 1,026 shares during the last quarter. Gibraltar Capital Management Inc. increased its stake in shares of Charles Schwab by 0.9% during the second quarter. Gibraltar Capital Management Inc. now owns 113,017 shares of the financial services provider’s stock worth $5,775,000 after acquiring an additional 1,057 shares during the period. Livingston Group Asset Management CO operating as Southport Capital Management increased its stake in shares of Charles Schwab by 11.0% during the second quarter. Livingston Group Asset Management CO operating as Southport Capital Management now owns 10,806 shares of the financial services provider’s stock worth $552,000 after acquiring an additional 1,068 shares during the period. HCR Wealth Advisors increased its stake in shares of Charles Schwab by 2.9% during the third quarter. HCR Wealth Advisors now owns 38,224 shares of the financial services provider’s stock worth $1,730,000 after acquiring an additional 1,081 shares during the period. Finally, Gs Investments Inc. increased its stake in shares of Charles Schwab by 2.2% during the third quarter. Gs Investments Inc. now owns 50,805 shares of the financial services provider’s stock worth $2,497,000 after acquiring an additional 1,090 shares during the period. 80.44% of the stock is owned by hedge funds and other institutional investors.

Shares of NYSE:SCHW traded down $0.99 during trading on Friday, hitting $47.64. The company’s stock had a trading volume of 7,088,010 shares, compared to its average volume of 6,796,633. The company has a market cap of $64.53 billion, a price-to-earnings ratio of 29.05, a price-to-earnings-growth ratio of 1.19 and a beta of 1.48. The company has a quick ratio of 0.27, a current ratio of 0.27 and a debt-to-equity ratio of 0.33. Charles Schwab has a fifty-two week low of $42.01 and a fifty-two week high of $60.22.

The company also recently announced a quarterly dividend, which will be paid on Friday, November 23rd. Investors of record on Friday, November 9th will be paid a dividend of $0.13 per share. The ex-dividend date of this dividend is Thursday, November 8th. This represents a $0.52 dividend on an annualized basis and a dividend yield of 1.09%. Charles Schwab’s payout ratio is currently 31.71%.

Charles Schwab declared that its Board of Directors has approved a share repurchase program on Thursday, October 25th that permits the company to buyback $1.00 billion in shares. This buyback authorization permits the financial services provider to buy up to 1.7% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s management believes its stock is undervalued.

Charles Schwab Company Profile

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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