Charles Schwab to Report Fiscal Q3 Results on Monday

Charles Schwab is scheduled to report its fiscal Q3 2022 results on Monday, October 17, 2022.

CHINA - 2022/07/25: In this photo illustration, the American multinational financial services ... [+] company Charles Schwab logo is displayed on a smartphone screen. (Photo Illustration by Budrul Chukrut/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty Images
With the recent announcement of Charles Schwab's merger with TD Ameritrade, the financial services landscape is set to change significantly. This move will give Schwab a more dominant position in the market, and it is likely that other companies will follow suit in the coming years. This consolidation of the industry could lead to higher prices and less choice for consumers, so it is important to keep an eye on these developments.

We expect Charles Schwab to post mixed results for its fiscal Q3 2022, with revenues topping consensus estimates but earnings coming in below expectations by a slight margin. The company saw strong growth in net interest income in the last quarter, thanks to higher interest rates and interest-earning assets. However, trading revenues were down 7% compared to the previous quarter. We expect total client assets to be down 10% year-over-year at the end of June 2022, and expect the same trend to continue in the third quarter.

Charles Schwab is a leading financial services company with a strong history of success. The company's stock is currently trading at around $72 per share, but our forecast indicates that its true value is actually $91 per share. This means that now may be a good time to buy Charles Schwab stock, as it is currently undervalued by 27%.

SCHW Earnings Estimates For FY 2022Q3Trefis
Looking ahead to the third quarter of fiscal 2022, SCHW is expected to generate earnings of $0.48 per share.

According to the consensus estimates, revenues are expected to edge past the current levels. This is good news for investors and businesses alike, as it indicates that the economy is continuing to grow.

Charles Schwab's revenues are expected to continue growing in the coming years, thanks to the company's strong performance in the asset management and administration sectors.

  • The NII is expected to continue its strong performance in the third quarter of 2022, contributing 48% of the net revenues. This is a result of the continued recovery in interest rates and the higher interest earnings on assets.
  • It is expected that the trading revenues will see some growth in the third quarter of 2022, due to lower client activity levels in the first two quarters of the year. However, the overall growth of the segment is still uncertain.
  • With asset management and administration fees only up 3% year-over-year in the first two quarters of 2022, it seems likely that the third quarter will see similar results. This is due in large part to lower total client assets, which negates the positive effect of higher fees as a percentage of assets.
  • We believe that Charles Schwab's revenues will reach $20.9 billion by FY2022. This would be a significant increase from their current revenue levels, and would solidify their position as one of the leading financial services companies in the world.

Looking ahead to fiscal Q3 2022, Trefis estimates Charles Schwab's net revenues to be around $5.45 billion. This would represent a 19% year-over-year increase and would be slightly above the consensus estimate of $5.41 billion. Schwab has seen strong growth in recent quarters, and we believe this trend is likely to continue in the coming quarter.

There is a strong possibility that EPS will miss the consensus estimates. This could be a result of a number of factors, including a slowdown in the economy or a change in the company's business model.

Despite slightly missing estimates, Charles Schwab is still on track to report strong earnings for the year. The company has seen top line growth and lower expenses, which is expected to continue in the third quarter. For the full year, EPS is expected to be $3.85.

It is estimated that the stock price will be 27% higher than the current market price. This is good news for investors who are looking to make a profit in the stock market.

I believe that Charles Schwab is a great company that is currently undervalued by the market. I believe that the stock is a great buy at current prices and that investors will be rewarded in the long run.

It is important to note that P/E multiples are based on share price at the end of the year and reported (or expected) adjusted earnings for the full year. This is important to keep in mind when analyzing a company's stock price.

With inflation rising and the Fed raising interest rates, Charles Schwab has fallen 15% this year. Can it drop more? See how low can Charles Schwab stock go by comparing its decline in previous market crashes. Here is a performance summary of all stocks in previous market crashes. It is difficult to say how low Charles Schwab stock can go in a market crash, as it depends on a number of factors. However, looking at the performance of other stocks in previous market crashes can give us some idea. In the past, stock prices have fallen by an average of 50% during market crashes. However, there have been some stocks that have declined by more than 90%. So, if we take a worst-case scenario, Charles Schwab stock could potentially drop by up to 90% in a market crash. However, it is worth noting that this is just a worst-case scenario and that the actual decline could be less than this.

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SCHW Return Compared With Trefis Multi-Strategy Portfolio  Trefis
The chart below compares the returns of the Schwab US Broad Market ETF (SCHW) with the Trefis Multi-Strategy Portfolio.

This paragraph discusses the Trefis Price Estimates dashboard, which allows users to see price estimates for various assets. This is a useful tool for investors who want to get an idea of what an asset is worth.