Charles Schwab (NYSE:SCHW) Posts Earnings Results, Surpassing Estimates

Charles Schwab (NYSE:SCHW) recently released its quarterly earnings results, revealing a stronger than expected performance. The financial services company reported earnings per share (EPS) of $1.01 for the quarter, which outperformed analysts' consensus estimate of $0.90 by $0.11. In addition, the firm generated revenue of $5.33 billion, exceeding the average prediction of $5.19 billion.

The company’s net margin stood at 27.47%, and it achieved a return on equity of 16.92%. This quarter's revenue reflected a 19.5% increase compared to the same period from the previous year, where the company had reported EPS of $0.68.

Price Performance Overview

On the date of its earnings announcement, shares of Charles Schwab opened at $81.77. The stock has seen a varied performance over the last year, with a low of $61.01 and a high of $83.35. Financial indicators for the company show a debt-to-equity ratio of 0.59, a quick ratio of 0.47, and a current ratio of 0.47. The firm's market capitalization is approximately $145.53 billion, with a price-to-earnings ratio of 31.95 and a price-to-earnings-growth ratio of 1.41.

Dividend Announcements

Charles Schwab also declared a quarterly dividend of $0.25 per share, which was disbursed on November 22nd. Shareholders who were on record as of November 8th were eligible for this dividend, resulting in an annualized dividend of $1.00 and a yield of 1.22%. Currently, the payout ratio for the company stands at 39.06%.

Insider Activity

In recent insider transactions, Nigel J. Murtagh unloaded 12,739 shares of Charles Schwab stock on November 22nd, with an average selling price of $81.17. This sale resulted in a total value of over $1 million. Following this transaction, Murtagh now holds about 59,092 shares with an estimated value of nearly $4.8 million. Additionally, insider Jonathan S. Beatty sold 2,300 shares on November 25th at an average price of $82.01.

Analyst Ratings and Forecast

The stock has been analyzed by several analysts, with varied ratings. StockNews.com recently upgraded the stock from a 'sell' to a 'hold.' Other analysts have adjusted their price targets: Piper Sandler moved theirs from $65.00 to $70.00, while Jefferies raised it from $84.00 to $94.00, issuing a 'buy' rating. Currently, the consensus rating for Charles Schwab is 'hold' with a target price of approximately $81.41.

Company Profile

The Charles Schwab Corporation operates as a savings and loan holding company, providing a range of financial services, including wealth management, securities brokerage, and banking services, both in the United States and internationally. The company is segmented into Investor Services and Advisor Services.

Earnings, Stocks, Finance