Have you been eager to see how The Charles Schwab Corporation SCHW performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this San Francisco-based brokerage company’s earnings release this morning:
An Earnings Beat
Schwab came out with adjusted earnings per share of 27 cents, which surpassed the Zacks Consensus Estimate by a penny.
Top line growth and lower expenses drove the results.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for Schwab depicted a bearish stance prior to the earnings release. The Zacks Consensus Estimate fell by a penny to 26 cents per share over the last 7 days.
Revenue Came In Higher Than Expected
Schwab posted net revenues of $1,597 million, which outpaced the Zacks Consensus Estimate of $1,585 million. Also, it compared favorably with the year-ago number of $1,551 million.
Key Statistics:
A steady focus on serving investor needs has helped Schwab’s business grow to $2.42 trillion in client assets by third quarter.
The company gathered $30.8 billion of core net new assets during the quarter, bringing the year-to-date total to $102.0 billion.
CEO Walt Bettinger said, “Schwab’s third quarter results reflect the continued success of our ‘through clients’ eyes’ strategy and our contemporary approach to helping clients manage their wealth. As we helped investors navigate recent market volatility, we also drove solid business growth.”
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for Schwab. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.
Check back later for our full write up on this Schwab earnings report!
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