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Low Market Volatility to Hurt Schwab's Q2 Earnings
Charles Schwab (NYSE: SCHW) is scheduled to report second-quarter 2024 results on Jul 16, before market open. While the company's earnings are expected to have declined in the quarter on a year-over-year basis, revenues are anticipated to have improved.
In the first quarter of 2024, Schwab's earnings beat the Zacks Consensus Estimate. Results benefited from the solid performance of the asset management business. The absence of fee waivers and solid brokerage account numbers acted as tailwinds. However, lower revenues due to higher funding costs posed a major headwind.
The company has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 3.2%.
The Charles Schwab Corporation Price and EPS Surprise
The Charles Schwab Corporation price-eps-surprise | The Charles Schwab Corporation Quote
Schwab's activities in the to-be-reported quarter did not encourage analysts to revise earnings estimates upward. In the past seven days, the Zacks Consensus Estimate for SCHW's second-quarter earnings has been revised 2.6% lower to 74 cents per share. The estimate indicates a decline of 1.3% from the year-ago quarter's reported number.
The consensus estimate for sales is pegged at $4.68 billion, which indicates a marginal rise from the year-ago quarter's reported figure.
Management projects second-quarter 2024 total revenues to decrease 1-2% sequentially.
Before we take a ...