Categories Earnings, Finance

Earnings preview: Clients to flock Charles Schwab Q1 results

Financial services firm The Charles Schwab Corp. (NYSE: SCHW) is scheduled to report its first-quarter 2019 earnings results on Monday before the market opens. The results will be benefited by higher client cash sweep balances and an increase in clients trading activity.

However, the company has experienced certain macroeconomic headwinds during the quarter. This included continued uncertainties from Brexit, US-China trade war, and global economic slowdown expectations. These headwinds have led to lower market volatility that dragged client activity down.

On the positive note, most of the investors who were interested to enter the market have ventured in January and February as Schwab has opened 131,000 and 115,000 new brokerage accounts during the two months. This reflected an improvement in the trading revenues for the first quarter.

Charles Schwab office building in Austin, TX.
Image Courtesy: Charles Schwab

Analysts expect earnings to jump by 20% to $0.66 per share and revenue to increase by 11.70% to $2.68 billion for the first quarter. In comparison, during the previous year quarter, the company reported a profit of $0.55 per share on revenue of $2.40 billion. The company had exceeded analysts expectations in three out of the last four quarters while one came in line with the projections.

For the fourth quarter, the company reported a 57% jump in earnings helped by an increase in client cash sweep balances, higher clients trading activity as well as balancing of near-term profitability with long-term investments for growth and efficiency. Revenues grew by 19% on its strengthened business momentum despite a volatile economic environment.

Clients opened 380,000 brokerage accounts in the fourth quarter, bringing its new accounts for the year to 1.6 million, up 9% from the previous year. For the fourth quarter, total client assets decreased by 3% to $3.25 trillion.

For the month-end January 2019, total client assets were $3.45 trillion, down 1% from January 2018 and up 6% compared to December 2018. For the month-end February 2019, total client assets were $3.53 trillion, up 6% from February 2018 and up 2% compared to January 2019.

Shares of Charles Schwab opened higher and is trading in the green territory on Friday. The stock has fallen over 10% in the past year while it has risen over 3% in the past three months.

 

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

Most Popular

FDX Earnings: All you need to know about FedEx’s Q1 2022 earnings results

FedEx Corporation (NYSE: FDX) reported first-quarter 2022 earnings results today. Total revenues increased to $22 billion from $19.3 billion in the same period a year ago. The company reported a

Adobe reports 22% spike in Q3 revenue: Infographic

Adobe Inc (NASDAQ: ADBE) reported third-quarter 2021 financial results after the regular market hours on Tuesday. The software giant reported Q3 revenue of $3.94 billion, up 22% year-over-year and higher

Starbucks (SBUX) Stock: Should you invest in the coffee giant now?

The restaurant and food service industry is struggling to regain momentum after being hit hard by the pandemic. Restauranteurs are currently busy adapting to the changed operating conditions, shifting focus

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top