Charles Schwab announces Q4 and 2023 full-year results

The Charles Schwab Corporation (NYSE: SCHW) released Q4 and 2023 full-year earnings results before the opening bell in Wall Street on Wednesday.

The US financial services company reported revenue of $4.459 billion, falling slightly short of analyst estimate of $4.494 billion. Revenue was down by 19% vs. Q4 of 2022.

Earnings per share (EPS) reported at $0.68 per share (down by 36% year-over-year) vs. $0.638 per share expected.

Full year revenue reached $18.837 billion, down by 9% vs. 2022. Full year EPS reported at $3.13, down by 20% year-over-year.

Company overview

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

CEO commentary

Walter W. Bettinger, CEO of Charles Schwab, commented on the latest results: “Over the course of 2023, our commitment to clients was unwavering. Through an uneven environment with shifting views on the trajectory of the U.S. economy, persistent geopolitical unrest, and a temporary disruption within the regional banking sector, our “no trade-offs” value proposition continued to resonate with investors. Clients entrusted us with $306 billion in core net new assets during the year, including over $43 billion in December alone. This ongoing success with clients helped push total client assets to a record $8.52 trillion at year-end. Additionally, we welcomed 977 thousand new-to-firm retail households as well as 315 advisors-in-transition to Schwab. In total, we added 3.8 million new brokerage accounts to increase our total client base to 34.8 million accounts.”

“As we move forward with our key initiatives, we remain as confident as ever in our “Through Clients’ Eyes” strategy. Our client focus has guided our culture and operating priorities for five decades and we believe it keeps us best positioned to sustain long-term profitable growth into the future,” Betting added.

Stock reaction

Shares of Charles Schwab were down by 1.34% at the end of trading day on Wednesday at $63.45 a share – the lowest level since 7/12/2023.

Stock performance

• 5 day: -3.60%
• 1 month: -5.47%
• 3 months: +22.40%
• Year-to-date: -7.78%
• 1 year: -22.03%

The Charles Schwab Corporation stock price targets

• Citigroup: $70
• Raymond James: $78
• TD Cowen: $77
• Goldman Sachs: $71
• UBS Group: $82
• JP Morgan: $85
• JMP Securities: $77
• Barclays: $57
• Morgan Stanley: $64
• Deutsche Bank: $69
• Jefferies Financial Group; $62
• Piper Sandler: $75
• Bank of America: $53
• Credit Suisse: $67.50

The Charles Schwab Corporation is the 120th largest company in the world with a market cap of $115.64 billion.

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Sources: The Charles Schwab Corporation, TradingView, MarketWatch, Benzinga, CompaniesMarketCap