Wall Street brokerages predict that Charles Schwab Co. (NYSE:SCHW) will announce earnings of $0.67 per share for the current fiscal quarter, Zacks reports. Five analysts have provided estimates for Charles Schwab’s earnings, with estimates ranging from $0.65 to $0.68. Charles Schwab reported earnings per share of $0.60 during the same quarter last year, which would suggest a positive year over year growth rate of 11.7%. The company is expected to announce its next earnings report on Tuesday, July 16th.
On average, analysts expect that Charles Schwab will report full year earnings of $2.77 per share for the current fiscal year, with EPS estimates ranging from $2.72 to $2.83. For the next financial year, analysts forecast that the firm will post earnings of $2.98 per share, with EPS estimates ranging from $2.93 to $3.05. Zacks’ EPS averages are a mean average based on a survey of sell-side analysts that follow Charles Schwab.
Charles Schwab (NYSE:SCHW) last announced its earnings results on Monday, April 15th. The financial services provider reported $0.69 earnings per share for the quarter, topping analysts’ consensus estimates of $0.66 by $0.03. The business had revenue of $2.72 billion for the quarter, compared to analyst estimates of $2.67 billion. Charles Schwab had a return on equity of 20.79% and a net margin of 35.27%. The company’s quarterly revenue was up 13.6% compared to the same quarter last year. During the same period in the prior year, the company earned $0.55 EPS.
SCHW has been the topic of several recent research reports. Zacks Investment Research lowered Charles Schwab from a “hold” rating to a “sell” rating in a research report on Monday, January 14th. UBS Group lowered Charles Schwab from a “neutral” rating to a “sell” rating and reduced their price objective for the company from $48.00 to $42.00 in a research report on Wednesday, February 20th. ValuEngine lowered Charles Schwab from a “hold” rating to a “sell” rating in a research report on Friday, February 22nd. Deutsche Bank reduced their price objective on Charles Schwab from $54.00 to $53.00 and set a “buy” rating on the stock in a research report on Friday, March 15th. Finally, Credit Suisse Group increased their price objective on Charles Schwab from $50.00 to $54.00 and gave the company an “outperform” rating in a research report on Thursday, January 17th. One research analyst has rated the stock with a sell rating, five have assigned a hold rating and ten have assigned a buy rating to the stock. The stock presently has an average rating of “Buy” and an average price target of $53.22.
In related news, CEO Marie A. Chandoha sold 45,046 shares of the stock in a transaction dated Tuesday, March 5th. The stock was sold at an average price of $45.48, for a total transaction of $2,048,692.08. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Terri R. Kallsen sold 41,285 shares of the stock in a transaction dated Monday, March 4th. The shares were sold at an average price of $46.75, for a total value of $1,930,073.75. The disclosure for this sale can be found here. Insiders have sold a total of 939,897 shares of company stock valued at $42,955,198 over the last 90 days. 10.90% of the stock is currently owned by company insiders.
A number of hedge funds have recently modified their holdings of SCHW. Pinkerton Retirement Specialists LLC lifted its holdings in Charles Schwab by 6.6% in the 4th quarter. Pinkerton Retirement Specialists LLC now owns 30,548 shares of the financial services provider’s stock worth $1,269,000 after buying an additional 1,888 shares during the period. Private Advisor Group LLC lifted its holdings in Charles Schwab by 13.9% in the 4th quarter. Private Advisor Group LLC now owns 38,460 shares of the financial services provider’s stock worth $1,592,000 after buying an additional 4,680 shares during the period. Principal Financial Group Inc. lifted its holdings in Charles Schwab by 5.8% in the 4th quarter. Principal Financial Group Inc. now owns 3,541,087 shares of the financial services provider’s stock worth $147,062,000 after buying an additional 193,547 shares during the period. Mercer Global Advisors Inc. ADV purchased a new stake in Charles Schwab in the 1st quarter worth approximately $375,000. Finally, American International Group Inc. lifted its holdings in Charles Schwab by 1.7% in the 4th quarter. American International Group Inc. now owns 478,762 shares of the financial services provider’s stock worth $19,883,000 after buying an additional 7,810 shares during the period. Institutional investors own 79.81% of the company’s stock.
Shares of Charles Schwab stock opened at $45.58 on Monday. The company has a debt-to-equity ratio of 0.38, a quick ratio of 0.83 and a current ratio of 1.08. The stock has a market cap of $61.69 billion, a PE ratio of 18.60, a PEG ratio of 1.53 and a beta of 1.33. Charles Schwab has a 12 month low of $37.83 and a 12 month high of $60.22.
The business also recently announced a quarterly dividend, which will be paid on Wednesday, May 29th. Investors of record on Wednesday, May 15th will be issued a dividend of $0.17 per share. This represents a $0.68 annualized dividend and a yield of 1.49%. The ex-dividend date of this dividend is Tuesday, May 14th. Charles Schwab’s dividend payout ratio is presently 27.76%.
Charles Schwab announced that its Board of Directors has authorized a stock repurchase plan on Wednesday, January 30th that authorizes the company to buyback $4.00 billion in shares. This buyback authorization authorizes the financial services provider to purchase up to 6.3% of its stock through open market purchases. Stock buyback plans are often a sign that the company’s board of directors believes its stock is undervalued.
About Charles Schwab
The Charles Schwab Corporation, through its subsidiaries, provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services. The company operates through two segments, Investor Services and Advisor Services. The Investor Services segment provides retail brokerage and banking services, retirement plan services, and other corporate brokerage services; equity compensation plan sponsors full-service recordkeeping for stock plans, stock options, restricted stock, performance shares, and stock appreciation rights; and retail investor, retirement plan, and mutual fund clearing services.
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