Charles Schwab Misses Expectations in Latest Quarterly Earnings Report
Charles Schwab (NYSE:SCHW), the San Francisco-based financial services giant, recently reported its quarterly earnings data for Q4 2020 on January 18th. Unfortunately for the company, it missed analysts’ consensus estimates of $1.10 earnings per share (EPS) with an EPS of $1.07, resulting in a deficit of ($0.03).
The firm did manage to generate $5.50 billion in revenue during the quarter, though this was lower than pre-reporting consensus estimates of $5.55 billion. Despite missing expectations, the data paints a rosy picture for Charles Schwab’s overall health, as their Q4 2020 revenue figures displayed a healthy increase of 16.8% compared to the same period last year.
Other key metrics indicate stable performance as well: Charles Schwab had a net margin of 34.60% and a return on equity of 24.94%. Additionally, comparisons between 2019 and 2020 show solid upticks across the board; last year’s Q4 displayed an EPS figure of just $0.86.
While investors may be disappointed by these latest numbers, they should be pleased with ongoing insider activity surrounding Charles Schwab stock-some insiders believe that now is the time to buy.
On January 18th, insider Jonathan M. Craig sold over 51,000 shares of CHW stock at an average price point of $80.30 per share-a move valued at roughly $4 million dollars total and disclosed via SEC filing after trading ended that day.
Interestingly enough-and perhaps more optimistically-March saw Director Marianne Catherine Brown acquire her own stake in CHW’s future success; she bought an impressive slice worth $267k over March’s opening days.
As expected for major concerns operating during COVID-19 times, market analysts are also keeping a close eye on the company’s overall per-share value. Currently, SCHW shares are trading at around $50.77, which is below their 200-day high of almost $87.
Despite Charles Schwab’s mixed report for Q4 2020-meaning its revolving impact on investors-your chances for futuThe current health and potential future growth of this company are topics worth watching should you want to make long-term investments in solid options.
Charles Schwab Co. receives lowered Q1 2023 EPS estimates from William Blair, but maintains Outperform rating
Charles Schwab Co. (NYSE: SCHW) has received lowered Q1 2023 EPS estimates from equities research firm, William Blair. According to a research note issued by the company on 14th April, financial services provider Charles Schwab is now estimated to post earnings per share of $0.87 for this quarter, down from the previous estimate of $0.93. While lowering current-quarter estimates, William Blair currently has an “Outperform” rating on the stock.
Furthermore, the financial services provider’s consensus estimate for its current full-year earnings is $3.80 per share with William Blair issuing quarterly EPS estimates for Charles Schwab’s future earnings projections as follows: Q2 2023 at $0.89 EPS; Q3 2023 at $0.90 EPS; Q4 2023 at $0.99 EPS; Q1 2024 at $1.03 EPS; Q2 2024 at $1.13 EPS; Q3 2024 at $1.20 EPS and Q4 2024 at $1.29 EPS.
According to other intelligence reports, Goldman Sachs Group lowered its price objective on shares of Charles Schwab and set a “buy” rating in mid-March while JPMorgan Chase & Co made assumptions about the stock’s potential growth prospects when assuming coverage on it around the same time frame.
Charles Schwab’s payout ratio currently stands at 28.57%, indicating a positive change from its previous quarterly dividend of $0.22 which was increased to $0.25 per share and paid out in February this year.
As per Bloomberg.com data, Charles Schwab holds a consensus rating of “Moderate Buy” among experts and an average price target of roughly $76 which reaffirms my investment advice to buy SCHW holdings as part of a diversified portfolio given their long-term focus on generating shareholder value through effective cost management and disciplined reinvestment into the business.