Charles Schwab's Q4 Results: Earnings Fall But Asset Growth Remains Strong
Portfolio Pulse from Vandana Singh
Charles Schwab Corporation (NYSE:SCHW) reported a decline in Q4 2023 earnings with adjusted net income falling 36% to $1.367 billion and adjusted EPS dropping to $0.68, albeit beating consensus estimates. Revenue decreased by 19% to $4.46 billion, slightly missing expectations. Despite a decrease in deposits and net interest revenue, Schwab saw strong asset growth, attracting $306 billion in new assets and ending the year with $8.52 trillion in client assets. The company also added new retail households and advisors, as well as new brokerage accounts. SCHW shares fell 7% in early morning trading following the earnings release.
January 17, 2024 | 2:49 pm
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Charles Schwab's Q4 earnings report showed a decline in profits and revenue but strong asset growth. Despite beating EPS estimates, shares dropped 7% in early trading.
The decline in Charles Schwab's adjusted net income and revenue, coupled with the decrease in deposits and net interest revenue, are negative indicators that are likely to impact investor sentiment in the short term. However, the beat on EPS and strong asset growth provide some positive counterbalance. The 7% drop in share price reflects the market's initial reaction to the mixed results, suggesting a negative short-term impact on the stock.
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