Charles Schwab Corporation (SCHW) exhibits strong performance with solid Q3 2024 results, beating earnings and revenue estimates despite a decline witnessed. Revenue managed to hit $4.8 billion with an EPS of $0.71, surpassing expectations. This was fuelled by continued asset gathering and sweep cash growth, pushing the company towards a record with $9.92 trillion in client assets. The announcement by Sumitomo Mitsui DS Asset Management Company acquiring 9,644 shares and Vista Investment Partners obtaining 20,400 shares highlights the growing institutional faith in SCHW. Insiders, including director Carolyn Schwab-Pomerantz, however, sold significant stock, signalling potential caution. Schwab’s Q3 earnings and debt reduction lead to projections for further EPS growth in Q4 signalling a positive long-term potential. The company also provides guidance for its Q4 2024 earnings and releases its Q2 earnings estimates, expecting growth. Market volatility was beneficial for Schwab's Q3 earnings but reduced net interest income stood as a drag. Despite this, Schwab’s stock soared by 7.6% post-earnings announcement and attracted a price target of $75.00 from Cowen and $84.00 from other brokers. Despite an earnings shrinkage over a five-year period, shareholders notched a 11% compound annual growth rate (CAGR). Also, despite having a five-year decline in earnings, optimism for Schwab has grown over the past week.
The Charles Schwab Corporation SCHW News Analytics from Tue, 09 Jul 2024 07:00:00 GMT to Sat, 19 Oct 2024 17:54:19 GMT -
Rating 8
- Innovation -2
- Information 9
- Rumor -1
