Charles Schwab Reports Q1 Earnings: What Key Metrics Have to Say

For the quarter ended March 2024, The Charles Schwab Corporation SCHW reported revenue of $4.74 billion, down 7.4% over the same period last year. EPS came in at $0.74, compared to $0.93 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $4.71 billion, representing a surprise of +0.56%. The company delivered an EPS surprise of +1.37%, with the consensus EPS estimate being $0.73.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Charles Schwab performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

• Total client assets: $9,118.4 billion versus $8,715.15 billion estimated by six analysts on average.
• Net interest margin: 2% versus 2% estimated by five analysts on average.
• Clients daily average trades - Total: 5,958 thousand compared to the 5,798.83 thousand average estimate based on five analysts.
• Average Interest Earning Assets: $431.46 billion versus $435.5 billion estimated by five analysts on average.
• Net revenues- Other: $159 million versus $150.84 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -14.1% change.
• Net revenues- Bank deposit account fees: $183 million compared to the $190.63 million average estimate based on seven analysts. The reported number represents a change of +21.2% year over year.
• Net revenues- Net interest revenue: $2.23 billion versus $2.21 billion estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -19.4% change.
• Net revenues- Asset management and administration fees: $1.35 billion compared to the $1.31 billion average estimate based on seven analysts. The reported number represents a change of +20.6% year over year.
• Net revenues- Trading revenue: $817 million versus $834.05 million estimated by seven analysts on average. Compared to the year-ago quarter, this number represents a -8.4% change.
• Net revenues- Asset management and administration fees- Schwab money market funds: $336 million versus $316.27 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +57.8% change.
• Net revenues- Asset management and administration fees- Schwab equity and bond funds, ETFs and collective trust funds (CTFs): $107 million versus the three-analyst average estimate of $104.31 million. The reported number represents a year-over-year change of +17.6%.
• Net revenues- Asset management and administration fees- Mutual Fund OneSource and other non-transaction fee funds: $209 million versus the three-analyst average estimate of $203.19 million. The reported number represents a year-over-year change of +41.2%.

Shares of Charles Schwab have returned +4.5% over the past month versus the Zacks S&P 500 composite's -0.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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