Wall Street analysts expect The Charles Schwab Corporation (SCHW) to post quarterly earnings of $1.22 per share in its upcoming report, which indicates a year-over-year increase of 58.4%. Revenues are expected to be $5.91 billion, up 22% from the year-ago quarter.
The current level reflects a downward revision of 0.2% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
With that in mind, let's delve into the average projections of some Charles Schwab metrics that are commonly tracked and projected by analysts on Wall Street.
Analysts' assessment points toward 'Net Revenues- Net interest revenue' reaching $2.93 billion. The estimate indicates a year-over-year change of +31.8%.
The collective assessment of analysts points to an estimated 'Net Revenues- Other' of $188.15 million. The estimate indicates a year-over-year change of -5.9%.
According to the collective judgment of analysts, 'Net Revenues- Bank deposit account fees' should come in at $249.21 million. The estimate indicates a change of +64% from the prior-year quarter.
It is projected by analysts that the 'Net Revenues- Asset management and administration fees' will reach $1.63 billion. The estimate indicates a year-over-year change of +10.2%.
The combined assessment of analysts suggests that 'Total client assets' will likely reach $11050.46 billion. Compared to the current estimate, the company reported $9920.50 billion in the same quarter of the previous year.
The consensus estimate for 'Clients? Daily Average Trades (DATs)' stands at 6.84 million. Compared to the present estimate, the company reported 5.70 million in the same quarter last year.
Analysts predict that the 'Average Interest Earning Assets' will reach $419.39 billion. The estimate compares to the year-ago value of $419.25 billion.
Based on the collective assessment of analysts, 'Average Client Assets - Total managed investing solutions' should arrive at $743.96 million. The estimate is in contrast to the year-ago figure of $669.03 million.
The consensus among analysts is that 'Average Client Assets - Mutual Fund OneSource and other no-transaction-fee funds' will reach $420.86 million. Compared to the current estimate, the company reported $354.66 million in the same quarter of the previous year.
Analysts forecast 'Average Client Assets - Schwab equity and bond funds, exchange-traded funds (ETFs), and collective trust funds (CTFs)' to reach $701.91 million. The estimate compares to the year-ago value of $603.31 million.
The average prediction of analysts places 'Average Client Assets - Schwab money market funds' at $656.83 million. Compared to the current estimate, the company reported $551.95 million in the same quarter of the previous year.
Analysts expect 'Net new client assets' to come in at $113.42 billion. Compared to the present estimate, the company reported $90.80 billion in the same quarter last year.
View all Key Company Metrics for Charles Schwab here>>>
Shares of Charles Schwab have experienced a change of -1.7% in the past month compared to the +0.4% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), SCHW is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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The Charles Schwab Corporation (SCHW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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