Charles Schwab stock gained 10% YTD, set to report strong Q2 results.

From Nasdaq: 2024-07-15 23:05:54

– Charles Schwab (NYSE: SCHW) stock gained 10% YTD, outperforming BlackRock (NYSE: BLK) which is up only 3% YTD. SCHW is set to report fiscal Q2 2024 results on July 16, with expectations of surpassing revenue and earnings estimates. Revenues were down 7% y-o-y in the last quarter due to lower NII and trading revenues.

– Amid financial fluctuations, SCHW stock has shown a 35% increase since Jan 2021, but with inconsistent returns of 59% in 2021, -1% in 2022, and -17% in 2023. The forecast indicates a $78 valuation per share, 4% above the current price of $75. Will SCHW continue to outperform in the uncertain macroeconomic environment?

– Revenues for Charles Schwab are expected to top estimates, reaching $19.66 billion in FY2024. NII declined by 12% y-o-y in 2023, followed by a 19% drop in Q1 2024, but is expected to see growth in Q2. Asset management fees grew 13% y-o-y in 2023 and are forecasted to continue the momentum in Q2.

– Trefis estimates Charles Schwab’s fiscal Q2 2024 net revenues to be $4.77 billion, 2% above the consensus estimate. Adjusted EPS is forecasted to be $0.75, almost 4% higher than the consensus $0.72. SCHW is likely to report annual GAAP EPS of $3.32 for FY 2024, despite a lower adjusted net income in 2023 and Q1 2024.

– Charles Schwab’s valuation suggests a $78 price per share, 4% higher than the current market price, based on an EPS estimate of $3.32 and a P/E multiple of just under 24x in fiscal 2024. SCHW’s returns are at 10% YTD, compared to the S&P 500’s 18%. The Trefis Reinforced Value Portfolio stands at 6% YTD returns in 2024.



Read more at Nasdaq: Charles Schwab Stock Is Trailing S&P500 By 8% YTD, What To Expect From Q2 Results?