uploads/2017/10/beta-values-1.png

Charles Schwab Met Earnings Estimate, Missed Revenue Estimate

By

Updated

Earnings and revenue estimates

Charles Schwab (SCHW) reported EPS (earnings per share) of $0.42 in 3Q17, thus beating Wall Street analysts’ estimate of $0.41. On the other hand, it missed Wall Street’s revenue estimate of $2.18 billion, reporting revenues of $2.17 billion.

The company witnessed a 23.0% rise in net income in 3Q17 compared to 3Q16. It reported net income of $618.0 million compared to $503.0 million in 3Q16.

In 3Q17, it saw an 8.0% rise on a YoY (year-over-year) basis for revenues related to asset management and administration fees. It managed to generate asset management and administration fees of $861.0 million compared to $798.0 million in 3Q16. The rise was mainly due to a rise in the balances of ETFs and mutual funds.

A rise in the balance of advised solutions has also contributed to the rise in asset management and administration fees.

It also saw a substantial fall of 21.0% in its trading revenues in 3Q17 compared to 3Q16. Its 3Q17 trading revenues were $151.0 million compared to $190.0 million in 3Q16. The fall came on the back of lower prices for the company’s trades.

Article continues below advertisement

Beta values

Charles Schwab (SCHW) currently has a beta value of 1.94. Its peers (XLF) have the following beta values:

  • Morgan Stanley (MS): 1.57
  • Goldman Sachs (GS): 1.48
  • Bank of America (BAC): 1.69
Advertisement

More From Market Realist