Analysts Anticipate Charles Schwab Co. (SCHW) to Announce $0.67 EPS

Equities analysts expect that Charles Schwab Co. (NYSE:SCHW) will post earnings per share (EPS) of $0.67 for the current quarter, according to Zacks. Five analysts have made estimates for Charles Schwab’s earnings, with estimates ranging from $0.65 to $0.68. Charles Schwab posted earnings per share of $0.60 in the same quarter last year, which would suggest a positive year-over-year growth rate of 11.7%. The firm is scheduled to issue its next earnings results on Tuesday, July 16th.

On average, analysts expect that Charles Schwab will report full-year earnings of $2.77 per share for the current financial year, with EPS estimates ranging from $2.72 to $2.83. For the next year, analysts expect that the business will post earnings of $2.98 per share, with EPS estimates ranging from $2.93 to $3.05. Zacks Investment Research’s EPS averages are an average based on a survey of sell-side analysts that that provide coverage for Charles Schwab.

Charles Schwab (NYSE:SCHW) last announced its quarterly earnings results on Monday, April 15th. The financial services provider reported $0.69 EPS for the quarter, topping the Thomson Reuters’ consensus estimate of $0.66 by $0.03. Charles Schwab had a net margin of 35.27% and a return on equity of 20.47%. The company had revenue of $2.72 billion for the quarter, compared to analyst estimates of $2.67 billion. During the same quarter in the prior year, the business posted $0.55 EPS. Charles Schwab’s quarterly revenue was up 13.6% on a year-over-year basis.

SCHW has been the topic of a number of research analyst reports. UBS Group lowered shares of Charles Schwab from a “neutral” rating to a “sell” rating and lowered their target price for the company from $48.00 to $42.00 in a research note on Wednesday, February 20th. Raymond James increased their target price on Charles Schwab from $51.00 to $54.00 and gave the company an “outperform” rating in a report on Wednesday, January 16th. Credit Suisse Group increased their target price on Charles Schwab from $50.00 to $54.00 and gave the company an “outperform” rating in a report on Thursday, January 17th. Bank of America set a $50.00 target price on Charles Schwab and gave the company a “buy” rating in a report on Tuesday, April 9th. Finally, ValuEngine cut Charles Schwab from a “hold” rating to a “sell” rating in a research report on Friday, February 22nd. One analyst has rated the stock with a sell rating, five have assigned a hold rating and ten have issued a buy rating to the company. The stock presently has a consensus rating of “Buy” and a consensus target price of $53.22.

In other Charles Schwab news, Director Charles A. Ruffel bought 2,500 shares of the business’s stock in a transaction that occurred on Friday, May 3rd. The stock was purchased at an average price of $46.10 per share, for a total transaction of $115,250.00. Following the completion of the transaction, the director now owns 788 shares of the company’s stock, valued at approximately $36,326.80. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Terri R. Kallsen sold 41,285 shares of the stock in a transaction dated Monday, March 4th. The stock was 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. In the last 90 days, insiders sold 939,897 shares of company stock valued at $42,955,198. Company insiders own 10.90% of the company’s stock.

Several large investors have recently added to or reduced their stakes in the stock. Quantamental Technologies LLC acquired a new position in Charles Schwab in the 1st quarter worth about $32,000. Laurel Wealth Advisors LLC acquired a new position in shares of Charles Schwab in the fourth quarter valued at about $31,000. First Personal Financial Services grew its stake in shares of Charles Schwab by 51.9% in the fourth quarter. First Personal Financial Services now owns 825 shares of the financial services provider’s stock valued at $34,000 after acquiring an additional 282 shares in the last quarter. Proficio Capital Partners LLC grew its stake in shares of Charles Schwab by 70.2% in the fourth quarter. Proficio Capital Partners LLC now owns 1,028 shares of the financial services provider’s stock valued at $43,000 after acquiring an additional 424 shares in the last quarter. Finally, Berman Capital Advisors LLC grew its stake in shares of Charles Schwab by 260.7% in the first quarter. Berman Capital Advisors LLC now owns 1,046 shares of the financial services provider’s stock valued at $44,000 after acquiring an additional 756 shares in the last quarter. Hedge funds and other institutional investors own 79.81% of the company’s stock.

Shares of SCHW traded down $2.04 during mid-day trading on Monday, hitting $43.81. 7,781,858 shares of the company’s stock were exchanged, compared to its average volume of 6,546,358. Charles Schwab has a twelve month low of $37.83 and a twelve month high of $60.22. The firm has a market cap of $61.13 billion, a price-to-earnings ratio of 17.88, a price-to-earnings-growth ratio of 1.51 and a beta of 1.33. The company has a quick ratio of 0.83, a current ratio of 0.33 and a debt-to-equity ratio of 0.36.

The business also recently declared a quarterly dividend, which will be paid on Wednesday, May 29th. Shareholders of record on Wednesday, May 15th will be given a $0.17 dividend. This represents a $0.68 dividend on an annualized basis and a yield of 1.55%. The ex-dividend date of this dividend is Tuesday, May 14th. Charles Schwab’s payout ratio is 27.76%.

Charles Schwab announced that its Board of Directors has approved a share repurchase program on Wednesday, January 30th that authorizes the company to repurchase $4.00 billion in shares. This repurchase authorization authorizes the financial services provider to buy up to 6.3% of its stock through open market purchases. Stock repurchase programs are usually an indication that the company’s leadership 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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