Charles Schwab Third Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component Charles Schwab (NYSE:SCHW) will unveil its latest earnings on Monday, October 15, 2012. Charles Schwab is a savings and loan holding company. Through its subsidiaries, the company provides individuals and institutional clients with securities brokerage, banking and related financial services.

Charles Schwab Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 17 cents per share, a decline of 5.6% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 1.4% compared to last year’s 69 cents.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the second quarter, it reported profit of 20 cents per share versus a mean estimate of 18 cents. Two quarters ago, it reported net income of 15 cents per share.

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A Look Back: In the second quarter, profit rose 15.5% to $275 million (20 cents a share) from $238 million (20 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 7.7% to $1.33 billion from $1.24 billion.

Stock Price Performance: Between September 11, 2012 and October 9, 2012, the stock price dropped 99 cents (-7.1%), from $13.92 to $12.93. The stock price saw one of its best stretches over the last year between December 30, 2011 and January 12, 2012, when shares rose for nine straight days, increasing 10.7% (+$1.21) over that span. It saw one of its worst periods between April 26, 2012 and May 10, 2012 when shares fell for 11 straight days, dropping 9.1% (-$1.30) over that span.

Analyst Ratings: There are mostly holds on the stock with nine of 15 analysts surveyed giving that rating.

Key Stats:

The company is looking to build on last quarter’s top line growth, which snapped a string of revenue declines. Revenue fell 2.7% in the fourth quarter of the last fiscal year and 1.4% in the first quarter before climbing in the second quarter.

The company enters this earnings announcement with steady profits recently. Net income has risen year-over-year average of 27.5% for the last four quarters.

Wall St. Revenue Expectations: Analysts predict a rise of 1.7% in revenue from the year-earlier quarter to $1.2 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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