$0.65 EPS Expected for Charles Schwab Co. (SCHW) This Quarter

Wall Street analysts predict that Charles Schwab Co. (NYSE:SCHW) will post earnings per share (EPS) of $0.65 for the current quarter, according to Zacks. Five analysts have issued estimates for Charles Schwab’s earnings. The lowest EPS estimate is $0.61 and the highest is $0.69. Charles Schwab reported earnings of $0.44 per share in the same quarter last year, which would indicate a positive year over year growth rate of 47.7%. The company is scheduled to announce its next earnings results on Wednesday, January 16th.

On average, analysts expect that Charles Schwab will report full-year earnings of $2.45 per share for the current financial year, with EPS estimates ranging from $2.40 to $2.49. For the next fiscal year, analysts expect that the company will report earnings of $2.87 per share, with EPS estimates ranging from $2.70 to $2.98. Zacks’ earnings per share averages are a mean average based on a survey of sell-side analysts that that provide coverage for Charles Schwab.

Charles Schwab (NYSE:SCHW) last issued its quarterly earnings data on Monday, October 15th. The financial services provider reported $0.65 earnings per share (EPS) for the quarter, hitting analysts’ consensus estimates of $0.65. Charles Schwab had a return on equity of 19.46% and a net margin of 32.65%. The company had revenue of $2.58 billion during the quarter, compared to analysts’ expectations of $2.58 billion. During the same quarter in the previous year, the company posted $0.42 earnings per share. The business’s revenue was up 19.1% on a year-over-year basis.

SCHW has been the subject of a number of research analyst reports. Citigroup reduced their price objective on Charles Schwab from $49.00 to $48.00 and set a “sell” rating for the company in a report on Monday, July 23rd. Morgan Stanley set a $70.00 price objective on Charles Schwab and gave the stock a “buy” rating in a report on Tuesday, September 18th. Wells Fargo & Co boosted their price objective on Charles Schwab from $54.00 to $56.00 and gave the stock a “$54.22” rating in a report on Wednesday, July 18th. Raymond James upgraded Charles Schwab from a “market perform” rating to an “outperform” rating and set a $54.00 price objective for the company in a report on Tuesday, October 30th. They noted that the move was a valuation call. Finally, Zacks Investment Research cut Charles Schwab from a “buy” rating to a “hold” rating in a report on Wednesday, July 11th. Two research analysts have rated the stock with a sell rating, five have given a hold rating and ten have assigned a buy rating to the stock. The company has an average rating of “Hold” and a consensus price target of $57.73.

Shares of NYSE:SCHW opened at $46.58 on Friday. Charles Schwab has a 12-month low of $42.01 and a 12-month high of $60.22. The company has a market cap of $62.93 billion, a PE ratio of 28.40, a PEG ratio of 1.16 and a beta of 1.48. The company has a debt-to-equity ratio of 0.33, a current ratio of 0.27 and a quick ratio of 0.27.

Charles Schwab announced that its board has authorized a stock repurchase program on Thursday, October 25th that allows the company to buyback $1.00 billion in shares. This buyback authorization allows the financial services provider to repurchase up to 1.7% of its stock through open market purchases. Stock buyback programs are typically a sign that the company’s board of directors believes its shares are undervalued.

The firm also recently announced a quarterly dividend, which will be paid on Friday, November 23rd. Shareholders of record on Friday, November 9th will be paid a dividend of $0.13 per share. This represents a $0.52 annualized dividend and a yield of 1.12%. The ex-dividend date is Thursday, November 8th. Charles Schwab’s payout ratio is presently 31.71%.

In other Charles Schwab news, EVP Jonathan M. Craig sold 2,629 shares of the company’s stock in a transaction on Monday, October 15th. The stock was sold at an average price of $48.84, for a total transaction of $128,400.36. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Christopher V. Dodds sold 15,718 shares of the company’s stock in a transaction on Thursday, August 16th. The stock was sold at an average price of $51.14, for a total value of $803,818.52. Following the sale, the director now owns 7,592 shares of the company’s stock, valued at $388,254.88. The disclosure for this sale can be found here. Insiders have sold 26,771 shares of company stock valued at $1,336,655 over the last 90 days. Corporate insiders own 11.50% of the company’s stock.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Acropolis Investment Management LLC bought a new stake in Charles Schwab during the second quarter worth $115,000. LFA Lugano Financial Advisors SA acquired a new position in shares of Charles Schwab during the third quarter worth $111,000. Point72 Hong Kong Ltd acquired a new position in shares of Charles Schwab during the second quarter worth $134,000. Zions Bancorporation acquired a new position in shares of Charles Schwab during the third quarter worth $136,000. Finally, Kaizen Advisory LLC increased its holdings in shares of Charles Schwab by 157.6% during the second quarter. Kaizen Advisory LLC now owns 2,980 shares of the financial services provider’s stock worth $152,000 after buying an additional 1,823 shares in the last quarter. Hedge funds and other institutional investors own 80.46% of the company’s stock.

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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