Financial services giant Charles Schwab (NYSE: SCHW) will be reporting earnings this Thursday before market open. Here’s what you need to know.
Charles Schwab beat analysts’ revenue expectations last quarter, reporting revenues of $7.07 billion, up 20.9% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates.
Is Charles Schwab a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Charles Schwab’s revenue to grow 17.1% year on year, slowing from the 26.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Charles Schwab has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Charles Schwab’s peers in the capital markets segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Goldman Sachs delivered year-on-year revenue growth of 23%, beating analysts’ expectations by 11.5%, and Jefferies reported revenues up 8.5%, topping estimates by 1.1%. Jefferies traded down 1.3% following the results.
Read our full analysis of Goldman Sachs’s results here and Jefferies’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the capital markets stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.5% on average over the last month. Charles Schwab is down 10.4% during the same time and is heading into earnings with an average analyst price target of $122.32 (compared to the current share price of $96.16).
ALSO WORTH WATCHING: Nvidia’s Quiet Partner. Nvidia’s chips cost a hundred grand. The connectors that make them work cost even more. One company makes them all.
Every AI server needs specialized infrastructure the chip companies don’t make. High-speed cables. Power connectors. Thermal sensors. This 90-year-old company built a monopoly on it. The AI boom just started. This stock is still flying under the radar. Claim The Stock Ticker Here for FREE.
