{"id":1116,"date":"2023-10-14T23:29:08","date_gmt":"2023-10-14T23:29:08","guid":{"rendered":"https:\/\/connectwithfund.com\/markets\/charles-schwab-stock-to-top-the-consensus-in-q3\/"},"modified":"2023-10-14T23:29:09","modified_gmt":"2023-10-14T23:29:09","slug":"charles-schwab-stock-to-top-the-consensus-in-q3","status":"publish","type":"post","link":"https:\/\/connectwithfund.com\/?p=1116","title":{"rendered":"Charles Schwab Stock To Top The Consensus In Q3"},"content":{"rendered":"
\n

Charles Schwab (NYSE: SCHW) is scheduled to report its fiscal Q3 2023 results on Monday, October 16, 2023. We expect the company to top the consensus estimates of revenues and earnings. The company posted better-than-expected results in the last quarter, despite a 9% y-o-y decrease in the net revenues to $4.66 billion. The top line mainly suffered due to lower net interest income, followed by a drop in bank deposit account fees and trading income. That said, asset management and administration fees grew 12% in the quarter. We expect the same trend to continue in the third quarter. Our interactive dashboard analysis on Charles Schwab\u2019s Earnings Preview<\/strong> has more details.<\/p>\n

Our forecast indicates that Charles Schwab\u2019s valuation<\/strong> <\/strong>is $73 per share, which is 41% above the current market price of around $52. <\/strong>Interestingly, Charles Schwab stock had a Sharpe Ratio of 0.2<\/strong> since early 2017, which is lower than 0.6 <\/strong>for the S&P 500 Index over the same period. This compares with the Sharpe of 1.24<\/strong> for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.<\/p>\n

(1) Revenues to edge past the consensus<\/strong><\/p>\n

Charles Schwab\u2019s revenues<\/strong> were $9.77 billion in the first two quarters of 2023 \u2013 at the same level as the year-ago figure.<\/p>\n

<\/fbs-ad><\/p>\n