Overview
Charles Schwab Q3 revenue grows 27% yr/yr, beating analysts' expectations
Adjusted EPS for Q3 beats consensus, rising 70% yr/yr
Company repurchased 28.9 mln shares for $2.7 bln during Q3
Outlook
Company did not provide specific future guidance
Result Drivers
ORGANIC GROWTH - Strong organic growth trends and increased adoption of wealth solutions contributed to record revenue and earnings, per CEO Rick Wurster
CLIENT CASH MANAGEMENT - Client transactional sweep cash increased by $13.5 bln from Q2, aiding reduction of higher-cost bank funding by $12.9 bln, per CFO Mike Verdeschi
CAPITAL RETURN - Co repurchased 28.9 mln shares for $2.7 bln, complementing strong business momentum, per CFO Mike Verdeschi
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $6.13 bln | $6 bln (13 Analysts) |
Q3 Adjusted EPS | Beat | $1.31 | $1.24 (17 Analysts) |
Q3 EPS | $1.26 | ||
Q3 Net Income | $2.40 bln | ||
Q3 Net Interest Margin (%) | 2.86% |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the investment banking & brokerage services peer group is "buy"
Wall Street's median 12-month price target for Charles Schwab Corp is $110.00, about 14.2% above its October 15 closing price of $94.33
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 19 three months ago
Press Release: ID:nBw5FdxT9a
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)