Financial services giant Charles Schwab (NYSE: SCHW) will be reporting earnings this Thursday morning. Here’s what to look for.
Charles Schwab beat analysts’ revenue expectations by 2% last quarter, reporting revenues of $5.85 billion, up 24.8% year on year. It was a strong quarter for the company, with and a decent beat of analysts’ revenue estimates.
Is Charles Schwab a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Charles Schwab’s revenue to grow 23.9% year on year to $6.00 billion, improving from the 5.2% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.24 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Charles Schwab has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Charles Schwab’s peers in the capital markets segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Jefferies delivered year-on-year revenue growth of 21.6%, beating analysts’ expectations by 8.4%, and Goldman Sachs reported revenues up 19.6%, topping estimates by 6.8%. Jefferies traded down 1.9% following the results.
Read our full analysis of Jefferies’s results here and Goldman Sachs’s results here.
Debates around the economy’s health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. While some of the capital markets stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.6% on average over the last month. Charles Schwab is up 1.3% during the same time and is heading into earnings with an average analyst price target of $109.35 (compared to the current share price of $93.27).
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