Sara Patel
Charles Schwab is set to report its fourth quarter earnings on Jan. 17. Investors will be on the lookout for asset growth and banking segment numbers, as the Fed eases interest rates in 2024.
Charles Schwab Corp SCHW will be reporting its fourth-quarter earnings on Jan. 17. The Street expects Schwab to report 64 cents in EPS and $4.48 billion in revenue as it reports before market hours .
Charles Schwab witnessed encouraging growth in client assets and brokerage accounts, showcasing its ability to attract and retain investors. In November 2023, total client assets reached an impressive $8.18 trillion, bolstered by $19.2 billion in net new assets and a substantial $508 billion in gains attributed to the stock market rally.
The company has grappled with challenges in its banking segment, experiencing a consistent decline in bank account deposits since June 2022. From $155.6 billion in June to $93.7 billion in November, the trend highlighted a noteworthy area of concern.
As interest rates potentially ease in the coming months, there could be a reversal in the transaction cash activity. This should benefit Charles Schwab’s net interest revenue.
Analysts who reviewed the stock are divided on their outlook towards Schwab stock. The average consensus rating stands at a Buy with a price target of $68.28.
