Charles Schwab posts mixed Q1 results

Charles Schwab Corporation (NYSE: SCHW) announced the latest financial results for the first three months of 2023 ended March 31, before the opening bell on Wall Street on Monday.

Company overview

• Founded: 1971
• Headquarters: Westlake, Texas, United States
• Number of branches: 400
• Number of employees: 35,300 (as of December 2022)
• Industry: Financial services
• Key people: Charles R. Schwab (co-chairman), Walter W. Bettinger (co-chairman & CEO)

The results

The company reported revenue that fell slightly short of analyst expectations at $5.116 billion vs. $5.134 billion estimate.

Earnings per share reported at $0.93 per share for the quarter vs. $0.90 per share expected.

CEO commentary

”When I drafted my first letter to stockholders 15 years ago in the middle of the financial crisis, I outlined four factors that helped distinguish Schwab from other financial institutions during a very challenging time for global markets: a strong financial foundation, a client-centric strategy, a disciplined operating approach, and a diversified business model. These characteristics remain every bit as relevant to our story today. We continue to consistently manage the business in a conservative manner, with an unwavering long-term orientation. Our ongoing commitment to this consistency of mission, including our “Through Clients’ Eyes” strategy, highlights why we maintain the ability to meet the needs of individual investors and the advisors who serve them through various environments,” CEO, Walter W. Bettinger said in a letter to shareholders.

”While equity markets rebounded from year-end 2022 levels, investor sentiment remained bearish – especially following the onset of the banking industry turmoil in early March. Fixed income markets also reflected growing fears of an economic downturn as the 10-year U.S. Treasury yield declined approximately 50 basis points from its intra-quarter peak to end March just under 3.50%. Through the various ups and downs to start the year, Schwab remained a trusted partner to investors. During the quarter, clients opened over 1 million new brokerage accounts and entrusted us with $132 billion of core net new assets – including over $53 billion in March alone. While Investor Services gathered approximately $60 billion during the period, the Advisor Services segment posted a record first quarter with over $71 billion in net flows and attracted 70 transitioning advisor teams. These near-record inflows across both our primary businesses represents an annualized organic growth rate north of 7% and helped push total client assets to $7.58 trillion at quarter-end.”

Shares closed up by +3.94% on Monday at $52.73 a share.

Stock performance

• 1 month: -6.55%
• 3 months: -36.81%
• Year-to-date: -37.02%
• 1 year: -30.03%

Charles Schwab Corporation price targets

• Barclays: $56
• Morgan Stanley: $65
• Citigroup: $65
• Credit Suisse: $68
• Goldman Sachs: $75
• Deutsche Bank: $83
• Piper Sandler: $95
• JP Morgan: $97

Charles Schwab Corporation is the 147^th largest company in the world with a market cap of $95.10 billion, according to CompaniesMarketCap.

You can trade Charles Schwab Corporation (NYSE: SCHW) and many other stocks from the NYSE, NASDAQ, HKEX, ASX, LSE and DE with GO Markets as a Share CFD.

Sources: Charles Schwab Corporation, TradingView, MarketWatch, MetaTrader 5, Benzinga, CompaniesMarketCap, Wikipedia