$2.70 Billion in Sales Expected for Charles Schwab Co. (SCHW) This Quarter
Equities research analysts expect that Charles Schwab Co. (NYSE:SCHW) will post $2.70 billion in sales for the current fiscal quarter, according to Zacks. Five analysts have provided estimates for Charles Schwab’s earnings, with the lowest sales estimate coming in at $2.62 billion and the highest estimate coming in at $2.75 billion. Charles Schwab reported sales of $2.40 billion in the same quarter last year, which indicates a positive year-over-year growth rate of 12.5%. The business is scheduled to announce its next earnings report on Monday, April 15th.
On average, analysts expect that Charles Schwab will report full-year sales of $11.17 billion for the current financial year, with estimates ranging from $10.81 billion to $11.38 billion. For the next financial year, analysts anticipate that the company will post sales of $11.88 billion, with estimates ranging from $11.42 billion to $12.22 billion. Zacks Investment Research’s sales calculations are a mean average based on a survey of sell-side analysts that cover Charles Schwab.
Charles Schwab (NYSE:SCHW) last posted its earnings results on Wednesday, January 16th. The financial services provider reported $0.65 EPS for the quarter, topping the consensus estimate of $0.64 by $0.01. The firm had revenue of $2.67 billion for the quarter, compared to analyst estimates of $2.64 billion. Charles Schwab had a return on equity of 20.28% and a net margin of 34.61%. Charles Schwab’s revenue for the quarter was up 19.0% compared to the same quarter last year. During the same period last year, the company earned $0.44 earnings per share.
SCHW traded down $0.02 during trading on Wednesday, hitting $44.74. The company’s stock had a trading volume of 4,468,389 shares, compared to its average volume of 7,113,678. The company has a current ratio of 0.29, a quick ratio of 0.29 and a debt-to-equity ratio of 0.32. Charles Schwab has a twelve month low of $37.83 and a twelve month high of $60.22. The firm has a market cap of $60.45 billion, a P/E ratio of 18.26, a PEG ratio of 1.03 and a beta of 1.37.
The company also recently announced a quarterly dividend, which will be paid on Thursday, February 28th. Stockholders of record on Thursday, February 14th will be given a $0.17 dividend. This represents a $0.68 annualized dividend and a dividend yield of 1.52%. The ex-dividend date is Wednesday, February 13th. This is an increase from Charles Schwab’s previous quarterly dividend of $0.13. Charles Schwab’s dividend payout ratio (DPR) is 21.22%.
Charles Schwab declared that its board has authorized a stock repurchase plan on Thursday, October 25th that permits the company to repurchase $1.00 billion in outstanding shares. This repurchase authorization permits the financial services provider to buy up to 1.7% of its stock through open market purchases. Stock repurchase plans are typically an indication that the company’s board of directors believes its stock is undervalued.
In related news, EVP Jonathan M. Craig sold 3,739 shares of Charles Schwab stock in a transaction that occurred on Tuesday, January 15th. The stock was sold at an average price of $43.58, for a total transaction of $162,945.62. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, Chairman Charles R. Schwab sold 250,000 shares of Charles Schwab stock in a transaction that occurred on Friday, February 1st. The stock was sold at an average price of $47.04, for a total value of $11,760,000.00. The disclosure for this sale can be found here. In the last 90 days, insiders sold 641,652 shares of company stock worth $30,138,896. Company insiders own 11.50% of the company’s stock.
A number of institutional investors have recently made changes to their positions in the stock. FMR LLC increased its stake in Charles Schwab by 13.7% during the second quarter. FMR LLC now owns 65,193,384 shares of the financial services provider’s stock worth $3,331,382,000 after acquiring an additional 7,868,551 shares during the last quarter. Oregon Public Employees Retirement Fund increased its stake in Charles Schwab by 1,949.8% during the fourth quarter. Oregon Public Employees Retirement Fund now owns 6,137,303 shares of the financial services provider’s stock worth $148,000 after acquiring an additional 5,837,890 shares during the last quarter. Parnassus Investments CA increased its stake in Charles Schwab by 22.3% during the fourth quarter. Parnassus Investments CA now owns 15,623,778 shares of the financial services provider’s stock worth $648,856,000 after acquiring an additional 2,850,678 shares during the last quarter. BlackRock Inc. increased its stake in Charles Schwab by 2.6% during the third quarter. BlackRock Inc. now owns 86,976,839 shares of the financial services provider’s stock worth $4,274,909,000 after acquiring an additional 2,179,682 shares during the last quarter. Finally, Capital World Investors increased its stake in Charles Schwab by 110.1% during the third quarter. Capital World Investors now owns 2,710,300 shares of the financial services provider’s stock worth $133,211,000 after acquiring an additional 1,420,300 shares during the last quarter. Hedge funds and other institutional investors own 79.78% of the company’s stock.
About Charles Schwab
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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