Charles Schwab Co. (SCHW) Expected to Post Quarterly Sales of $2.70 Billion

Wall Street brokerages expect that Charles Schwab Co. (NYSE:SCHW) will report sales of $2.70 billion for the current quarter, Zacks reports. Five analysts have made estimates for Charles Schwab’s earnings, with the highest sales estimate coming in at $2.75 billion and the lowest estimate coming in at $2.65 billion. Charles Schwab reported sales of $2.40 billion in the same quarter last year, which would suggest a positive year over year growth rate of 12.5%. The company is expected to report its next earnings results on Monday, April 15th.

On average, analysts expect that Charles Schwab will report full year sales of $11.18 billion for the current year, with estimates ranging from $10.90 billion to $11.38 billion. For the next financial year, analysts forecast that the company will report sales of $11.87 billion, with estimates ranging from $11.41 billion to $12.22 billion. Zacks Investment Research’s sales calculations are an average based on a survey of sell-side analysts that that provide coverage for Charles Schwab.

Charles Schwab (NYSE:SCHW) last posted its quarterly earnings data on Wednesday, January 16th. The financial services provider reported $0.65 EPS for the quarter, topping analysts’ consensus estimates of $0.64 by $0.01. The business had revenue of $2.67 billion for the quarter, compared to analyst estimates of $2.64 billion. Charles Schwab had a return on equity of 20.11% and a net margin of 34.61%. The firm’s revenue for the quarter was up 19.0% on a year-over-year basis. During the same period in the previous year, the company posted $0.44 earnings per share.

SCHW has been the topic of several research reports. Goldman Sachs Group assumed coverage on Charles Schwab in a research note on Friday, November 30th. They set a “buy” rating and a $55.00 price target on the stock. Citigroup raised Charles Schwab from a “sell” rating to a “neutral” rating and set a $44.08 target price on the stock in a report on Sunday, December 2nd. Zacks Investment Research downgraded Charles Schwab from a “buy” rating to a “hold” rating in a report on Tuesday, December 4th. Wells Fargo & Co reduced their target price on Charles Schwab from $53.00 to $44.00 and set a “market perform” rating on the stock in a report on Friday, January 4th. Finally, Morgan Stanley reduced their target price on Charles Schwab from $60.00 to $55.00 and set an “overweight” rating on the stock in a report on Friday, January 4th. Two research analysts have rated the stock with a sell rating, five have assigned a hold rating and nine have given a buy rating to the company. The stock presently has an average rating of “Hold” and a consensus target price of $53.15.

In other Charles Schwab news, EVP Jonathan M. Craig sold 3,739 shares of the company’s stock in a transaction on Tuesday, January 15th. The shares were sold at an average price of $43.58, for a total transaction of $162,945.62. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Chairman Charles R. Schwab sold 250,000 shares of the company’s stock in a transaction on Friday, February 1st. The shares were sold at an average price of $47.04, for a total transaction of $11,760,000.00. The disclosure for this sale can be found here. Insiders have sold a total of 356,416 shares of company stock valued at $16,652,483 in the last quarter. Corporate insiders own 11.50% of the company’s stock.

Institutional investors have recently modified their holdings of the business. MML Investors Services LLC increased its position in shares of Charles Schwab by 89.3% in the 3rd quarter. MML Investors Services LLC now owns 28,060 shares of the financial services provider’s stock valued at $1,379,000 after buying an additional 13,238 shares in the last quarter. Keybank National Association OH increased its position in shares of Charles Schwab by 27.3% in the 3rd quarter. Keybank National Association OH now owns 33,192 shares of the financial services provider’s stock valued at $1,631,000 after buying an additional 7,118 shares in the last quarter. Bank of New York Mellon Corp increased its position in shares of Charles Schwab by 0.9% in the 3rd quarter. Bank of New York Mellon Corp now owns 12,675,853 shares of the financial services provider’s stock valued at $623,016,000 after buying an additional 108,436 shares in the last quarter. CIBC World Markets Inc. increased its position in shares of Charles Schwab by 26.6% in the 3rd quarter. CIBC World Markets Inc. now owns 50,712 shares of the financial services provider’s stock valued at $2,492,000 after buying an additional 10,647 shares in the last quarter. Finally, Trexquant Investment LP bought a new stake in shares of Charles Schwab in the 3rd quarter valued at $3,249,000. Institutional investors own 80.13% of the company’s stock.

Shares of Charles Schwab stock traded up $0.07 during trading on Friday, reaching $42.76. The company’s stock had a trading volume of 6,327,891 shares, compared to its average volume of 6,751,721. 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 firm has a market capitalization of $57.61 billion, a PE ratio of 17.45, a PEG ratio of 0.97 and a beta of 1.34. Charles Schwab has a one year low of $37.83 and a one year high of $60.22.

The company also recently disclosed a quarterly dividend, which was paid on Thursday, February 28th. Shareholders of record on Thursday, February 14th were issued a dividend of $0.17 per share. This is an increase from Charles Schwab’s previous quarterly dividend of $0.13. The ex-dividend date was Wednesday, February 13th. This represents a $0.68 annualized dividend and a yield of 1.59%. Charles Schwab’s dividend payout ratio is currently 27.76%.

Charles Schwab announced that its Board of Directors has approved a stock repurchase plan on Wednesday, January 30th that allows the company to buyback $4.00 billion in shares. This buyback authorization allows the financial services provider to reacquire up to 6.3% of its stock through open market purchases. Stock buyback plans are generally a sign that the company’s board believes its stock is undervalued.

Charles Schwab Company Profile

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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