Charles Schwab Stock To Post Mixed Result In Q2

Charles Schwab (NYSE: SCHW) is scheduled to report its fiscal Q2 2023 results on Tuesday, July 18, 2023. We expect it to post mixed results, with revenues beating the consensus estimates but earnings missing the mark. The company missed the revenues estimates in the last quarter, however managed to edge past the earnings expectations. It reported total revenues of $5.12 billion – up 10% y-o-y, mainly driven by growth in net interest income and asset management & administration fees. That said, the positive impact was partially offset by lower trading revenues and bank deposit account fees. We expect the trading revenues to continue on the same trend in Q2 due to lower client activity levels. Further, net interest income is likely to suffer because of slower loan growth.

Our forecast indicates that Charles Schwab’s valuation is $66 per share, which is 14% above the current market price of around $58. Our interactive dashboard analysis on Charles Schwab’s Earnings Preview has more details.