Charles Schwab’s Report is out.. Carl boasts big Metrics

The Charles Schwab Corporation (SCHW) ended its quarter in March 2024, reporting a revenue of $4.74 billion, a 7.4% decrease compared to the same period last year. Its earnings per share (EPS) were at $0.74, in contrast to $0.93 during the same quarter last year.

This reported revenue was slightly above the Zacks Consensus Estimate of $4.71 billion, beating expectations by +0.56%. The company also exceeded the consensus EPS estimate of $0.73, with a surprise performance of +1.37%.

Insightful metrics that provide a clear view on a company’s financial condition are essential for investors. These measures are key motivators of the top- and bottom-line figures. Comparing these with the data from last year and analysts’ predictions aids investors in better forecasting a stock’s price performance.

Here’s a recap of how Charles Schwab fared in the recently reported quarter based on the metrics most tracked and forecasted by Wall Street analysts:

• Total client assets stood at $9,118.4 billion, against $8,715.15 billion as estimated by the average of six analysts.
• The net interest margin was 2%, in line with the estimate of five analysts.
• There were a total of 5,958 thousand clients’ daily average trades, contrasted with 5,798.83 thousand as the average prediction from five analysts.
• Average Interest Earning Assets tallied $431.46 billion, versus the $435.5 billion average estimate from five analysts.

Various net revenues were reported as follows:

• Other net revenues stood at $159 million, higher than the $150.84 million forecasted by seven analysts, down by -14.1% year over year.
• Bank deposit account fees reached $183 million, exceeding the average prediction of $190.63 million from seven analysts, a year-over-year increase of +21.2%.
• Net interest revenue of $2.23 billion was compared to the $2.21 billion predicted by seven analysts, marking a -19.4% year-over-year change.

Furthermore, noteworthy increases were seen in asset management and administration fees:

• Overall asset management and administration fees were $1.35 billion, above the $1.31 billion average prediction from seven analysts, up by +20.6% year over year.
• Trading revenue accumulated $817 million, just below the $834.05 million estimated by seven analysts, and was down by -8.4% compared to the year-ago quarter.
• Schwab money market funds generated $336 million, surpassing the $316.27 million estimate from three analysts, showing a remarkable +57.8% growth from the previous year.
• Schwab equity, bond funds, ETFs and collective trust funds (CTFs) reported $107 million, higher than the average estimate of $104.31 million from three analysts, up by +17.6% year over year.
• Mutual Fund OneSource and other non-transaction fee funds reported earnings of $209 million, outperforming the average expected amount of $203.19 million from three analysts, indicating a solid increase of +41.2% from the last year.

In the past month, Charles Schwab shares have seen a +4.5% return, outpacing the -0.9% change of the Zacks S&P 500 composite. Holding a Zacks Rank #3 (Hold), the stock is predicted to perform on par with the broader market in the near future.