SCHW stock experienced a significant increase in the early hours of Tuesday's trading session, climbing approximately 5-6%, although it had reached gains of nearly 8% earlier in the morning. This performance stands out, especially when compared to the S&P 500 and most financial indices, which saw an increase of about half a percent. InvestingPro data reveals the stock has delivered impressive returns, with a 24% gain over the past six months and a 21.58% return over the last year.
The company has also maintained its dividend payments for 36 consecutive years, demonstrating consistent shareholder returns. For deeper insights into Charles Schwab (NYSE:SCHW)'s valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro. InvestingPro data reveals the stock has delivered impressive returns, with a 24% gain over the past six months and a 21.58% return over the last year.
The company has also maintained its dividend payments for 36 consecutive years, demonstrating consistent shareholder returns. For deeper insights into Charles Schwab's valuation and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
Charles Schwab's management team, led by Wurster, conveyed confidence in the company's growth prospects during the 4Q24 earnings call. They forecasted a revenue increase of 13-15% for the year 2025, slightly above the consensus estimates.
This projection translates to approximately $22.3-22.4 billion in revenue for 2025, which is around 1% higher than the figures anticipated by Visible Alpha. InvestingPro analysis shows the company maintains a "GOOD" overall financial health score, with particularly strong profitability metrics, building on its current revenue base of $18.74 billion.
The company also provided guidance on other financial metrics, expecting a net interest margin (NIM) for the full year to be in the range of 2.55-2.65%. This outlook is consistent with consensus expectations, which are at the higher end of the range. However, Schwab anticipates overall net interest income (NII) to surpass expectations, as the Street's models predict a decrease in average earning assets more significant than what Schwab's guidance suggests.
Furthermore, Schwab's management anticipates adjusted expense growth to be between 4.5-5.5%, which is considered favorable compared to consensus estimates, given the stronger revenue growth. The adjusted pretax margin is expected to be in the upper 40s, reaching close to 50% in the fourth quarter of 2025. Consequently, the adjusted earnings per share (EPS) for 2025 are estimated to be between $4.10 and $4.20, which is approximately 3.5% higher than the Street's expectations of $4.01.
SCHW stock experienced a significant increase in the early hours of Tuesday's trading session, climbing approximately 5-6%, although it had reached gains of nearly 8% earlier in the morning. This performance stands out, especially when compared to the S&P 500 and most financial indices, which saw an increase of about half a percent.
In other recent news, Charles Schwab Corporation reported significant growth in client assets, totaling $10.31 trillion at the end of November, driven by core net new assets from new and existing clients reaching $28.8 billion. The financial services firm has revised its full-year net revenue growth forecast to between 3.0% and 3.5%. As per analysts from TD Cowen, Citi, and Keefe, Bruyette & Woods, the company has demonstrated a robust ability to maintain steady client cash levels and increase net new assets.
Toronto-Dominion Bank (TSX:TD), Charles Schwab's largest shareholder, is reviewing its 10% stake in the company, following a U.S. money-laundering scandal. The bank's incoming CEO Raymond (NSE:RYMD) Chun confirmed that the fate of the Schwab shares is part of the capital-allocation review. However, the bank's agreement with Schwab regarding sweep-deposit accounts for clients would continue regardless of the outcome of the strategic review.
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