SCHW Earnings Prediction
The chart below shows how SCHW performed 10 days before and after its earnings report, based on data from the past quarters. Typically, SCHW sees a -0.57% change in stock price 10 days leading up to the earnings, and a +0.85% change 10 days following the report. On the earnings day itself, the stock moves by +1.86%. This data can give you a slight idea of what to expect for the next quarter's release.
SCHW Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
6.55B
2.44%
3.21%
Gross Margin
--
--
--
Operating Margin
28.41%
22.88%
0.67%
Net Margin
21.49%
22.17%
2.43%
EPS
0.73
30.36%
7.35%
No Data Available
SCHW Earnings Analysis
The Charles Schwab Corporation Corporation (SCHW.N) Earnings Conference Call
Positive
Positive Net New Assets: In the third quarter, we made strong progress across virtually all key areas, with former Ameritrade clients continuing to generate positive net new assets, marking the second quarter in a row of growth.
Record Cash Balances Growth: Our clients are growing transactional sweep cash balances, with managed investing or retail advisory flows breaking another record totaling $15 billion during the third quarter.
Strong Net New Assets: Net new assets were also quite strong during what is sometimes a slower quarter given that the summer months are included, with net new assets more than doubling from the third quarter of last year.
Managed Investing Net Flows: Year-to-date managed investing net flows are up 65% compared to last year, and in the third quarter, new and existing clients added $11.5 billion to our full-service wealth offers, which is 75% more than the prior year quarter.
Client Engagement and Trading: We continue to see strong engagement among our clients as they utilize our broad wealth management and trading capabilities, with trading activity solid, including some modest softening late in the quarter.
Negative
Organic Growth Decline: The third quarter saw a decline in organic growth, with cash growth remaining in the 5% to 7% range, indicating a slowdown compared to previous quarters.
Organic Growth Challenges: Despite a strong performance in the third quarter, the company acknowledged that it has not yet reached its traditional level of organic growth or peak financial performance.
Supplemental Funding Decline: The company experienced a significant drop in supplemental funding, with balances down over 30% from peak levels back in May 2023.
Client Cash Activity Decline: There was a noted decrease in client cash activity, which has been a key driver of growth, suggesting potential challenges in maintaining momentum going forward.
Cautious Revenue Growth Outlook: The anticipated revenue growth for 2024 is only expected to be between 2% to 3%, which is slightly above the previously communicated range, indicating a cautious outlook.
SCHW FAQs
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SCHW Earning Call Sentiment
The Charles Schwab Corporation (SCHW) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
SCHW.N
0.86%Positive
The earnings call highlights strong financial performance, with a 5% revenue and pre-tax income increase, record managed investing flows, and improved cash management. However, concerns about market volatility and client retention persist. The Q&A section reassures investors about cash stabilization and strategic funding. The positive sentiment is bolstered by the stock buyback program and dividend commitment. Despite some uncertainties, the overall outlook, including optimistic guidance and strong financials, suggests a positive stock price movement over the next two weeks.