Charles Schwab Co. (SCHW) Expected to Post Quarterly Sales of $2.66 Billion

Wall Street analysts expect Charles Schwab Co. (NYSE:SCHW) to announce $2.66 billion in sales for the current quarter, Zacks reports. Five analysts have provided estimates for Charles Schwab’s earnings. The lowest sales estimate is $2.63 billion and the highest is $2.67 billion. Charles Schwab reported sales of $2.24 billion in the same quarter last year, which indicates a positive year-over-year growth rate of 18.8%. The business is expected to announce its next earnings report on Wednesday, January 16th.

On average, analysts expect that Charles Schwab will report full year sales of $10.14 billion for the current financial year, with estimates ranging from $10.10 billion to $10.24 billion. For the next fiscal year, analysts expect that the company will report sales of $11.40 billion, with estimates ranging from $11.17 billion to $11.77 billion. Zacks’ sales averages are an average based on a survey of sell-side analysts that that provide coverage for Charles Schwab.

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

Several analysts recently issued reports on the stock. Barclays reduced their price objective on shares of Charles Schwab from $65.00 to $57.00 and set an “overweight” rating on the stock in a report on Monday, October 22nd. Jefferies Financial Group restated a “buy” rating and issued a $66.00 price objective on shares of Charles Schwab in a report on Monday, July 16th. Zacks Investment Research upgraded shares of Charles Schwab from a “hold” rating to a “buy” rating and set a $55.00 price objective on the stock in a report on Wednesday, October 3rd. Morgan Stanley boosted their price objective on shares of Charles Schwab from $65.00 to $66.00 and gave the company a “buy” rating in a report on Tuesday, October 9th. Finally, Wolfe Research assumed coverage on shares of Charles Schwab in a report on Tuesday, September 25th. They issued an “underperform” rating on the stock. Two investment 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. The stock presently has an average rating of “Hold” and an average target price of $57.73.

Shares of SCHW stock traded down $0.99 on Tuesday, hitting $47.64. 7,085,189 shares of the stock traded hands, compared to its average volume of 6,796,621. The company has a current ratio of 0.27, a quick ratio of 0.27 and a debt-to-equity ratio of 0.33. The stock has a market cap of $64.53 billion, a price-to-earnings ratio of 29.05, a PEG ratio of 1.19 and a beta of 1.48. Charles Schwab has a twelve month low of $42.01 and a twelve month high of $60.22.

The firm also recently declared a quarterly dividend, which will be paid on Friday, November 23rd. Shareholders 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 yield of 1.09%. Charles Schwab’s dividend payout ratio (DPR) is presently 31.71%.

Charles Schwab announced that its Board of Directors has initiated a share buyback program on Thursday, October 25th that allows the company to buyback $1.00 billion in outstanding shares. This buyback authorization allows the financial services provider to repurchase up to 1.7% of its stock through open market purchases. Stock buyback programs are usually a sign that the company’s board of directors believes its shares are undervalued.

In related news, insider Marie A. Chandoha sold 12,400 shares of the company’s stock in a transaction that occurred on Monday, November 5th. The shares were sold at an average price of $47.18, for a total transaction of $585,032.00. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director Christopher V. Dodds sold 15,718 shares of the company’s stock in a transaction that occurred on Thursday, August 16th. The stock was sold at an average price of $51.14, for a total transaction of $803,818.52. Following the sale, the director now owns 7,592 shares in the company, valued at $388,254.88. The disclosure for this sale can be found here. Insiders have sold 39,171 shares of company stock worth $1,921,687 over the last quarter. Insiders own 11.50% of the company’s stock.

Hedge funds have recently added to or reduced their stakes in the stock. Pittenger & Anderson Inc. increased its stake in shares of Charles Schwab by 1.2% during the second quarter. Pittenger & Anderson Inc. now owns 164,316 shares of the financial services provider’s stock worth $8,397,000 after buying an additional 1,995 shares during the period. Point72 Hong Kong Ltd acquired a new position in Charles Schwab in the second quarter valued at approximately $134,000. Argent Trust Co boosted its holdings in Charles Schwab by 55.8% in the second quarter. Argent Trust Co now owns 26,167 shares of the financial services provider’s stock valued at $1,337,000 after purchasing an additional 9,377 shares in the last quarter. Canada Pension Plan Investment Board boosted its holdings in Charles Schwab by 132.2% in the second quarter. Canada Pension Plan Investment Board now owns 388,910 shares of the financial services provider’s stock valued at $19,873,000 after purchasing an additional 221,400 shares in the last quarter. Finally, Keybank National Association OH boosted its holdings in Charles Schwab by 11.7% in the second quarter. Keybank National Association OH now owns 26,074 shares of the financial services provider’s stock valued at $1,332,000 after purchasing an additional 2,733 shares in the last quarter. Hedge funds and other institutional investors own 80.44% of the company’s stock.

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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