The Charles Schwab Corporation (NYSE: $SCHW) is a savings and loan holding company that offers its customers wealth management, securities brokerage banking, custody, asset management, and financial advisory services.
Latest Earnings Report
Charles Schwab released its earnings report on Monday, October 16, 2023. In the report, the company had outperformed the analysts’ recent average forecast. However, it is still down sharply from the year prior.
The brokerage giant’s EPS for fiscal Q3 2023 was 77 cents per share, higher than the predicted 74 cents per share. However, it is still lower than the $1.10 per share reported in the same period in the year prior. The drop is due to various challenges Schwab has faced in 2023.
Revenues were down 16% year-over-year to $4.6 billion, while adjusted net income fell by 31% to $1.5 billion. Additionally, total client assets were $7,824.5, lower than the analysts’ prediction of $8,044.1 billion.
On a positive note, the company added $46 billion in core net new assets in Q3. That figure included $27 billion added in September. Additionally, its asset management and administration fees were up 17% to $1.22 billion.
Schwab predicted net interest margin (NIM) would rebound next year and approach 3% by 2025. For FY23, the company predicts its revenues to drop 8%-9% year-over-year. That is in line with analysts’ prediction of a 7.9% drop. On an adjusted basis, expenses will rise 6% for FY23.
Charles Schwab Stock Forecast
Wall Street analysts give SCHW stock a moderate buy rating. They give the stock an average price target of $71.36. Based on the previous day’s trading closing price of $53.72, with a premarket price of $53.75, is an upside of 32.84%. According to a report by Citi, the price target for Schwab is $75.00.
Should You Invest In Schwab?
As with any investment, one has to devise a good plan and take action. Due to the stock market’s volatility, it is almost impossible to predict the market bottom accurately. A good strategy is determining how much exposure is appropriate for your investment goal. Coupled with your risk tolerance, you can then take action, regardless of the current performance of the stock market.
Disclaimer: This website provides information about cryptocurrency and stock market investments. This website does not provide investment advice and should not be used as a replacement for investment advice from a qualified professional. This website is for educational and informational purposes only. The owner of this website is not a registered investment advisor and does not offer investment advice. You, the reader / viewer, bear responsibility for your own investment decisions and should seek the advice of a qualified securities professional before making any investment.