For the quarter ended June 2023, The Charles Schwab Corporation (SCHW) reported revenue of $4.66 billion, down 8.6% over the same period last year. EPS came in at $0.75, compared to $0.97 in the year-ago quarter.
The reported revenue represents a surprise of +0.97% over the Zacks Consensus Estimate of $4.61 billion. With the consensus EPS estimate being $0.72, the EPS surprise was +4.17%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how The Charles Schwab Corporation performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Total client assets: $8015.8 billion versus $7477.9 billion estimated by six analysts on average.
- Average Interest Earning Assets: $485.5 billion versus $505.8 billion estimated by five analysts on average.
- Net interest margin: 1.87% versus the five-analyst average estimate of 1.88%.
- Clients daily average trades - Total: 5272 thousand versus the five-analyst average estimate of 5291.51 thousand.
- Net revenues- Asset management and administration fees: $1.17 billion versus the seven-analyst average estimate of $1.15 billion. The reported number represents a year-over-year change of +11.5%.
- Net revenues- Other: $215 million versus the seven-analyst average estimate of $201.49 million. The reported number represents a year-over-year change of -17.3%.
- Net revenues- Trading revenue: $803 million compared to the $791.34 million average estimate based on seven analysts. The reported number represents a change of -9.3% year over year.
- Net revenues- Bank deposit account fees: $175 million compared to the $166.05 million average estimate based on seven analysts. The reported number represents a change of -50.3% year over year.
- Net revenues- Net interest revenue: $2.29 billion versus the seven-analyst average estimate of $2.34 billion. The reported number represents a year-over-year change of -10%.
- Net revenues- Asset management and administration fees- Mutual Fund OneSource and other non-transaction fee funds: $151 million versus $161.95 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -23.2% change.
- Net revenues- Asset management and administration fees- Schwab equity and bond funds, ETFs and collective trust funds (CTFs): $94 million versus $94.63 million estimated by two analysts on average.
- Net revenues- Asset management and administration fees- Schwab money market funds: $252 million versus the two-analyst average estimate of $251.47 million.
Shares of The Charles Schwab Corporation have returned +7.8% over the past month versus the Zacks S&P 500 composite's +2.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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