Charles Schwab FY2025 EPS Estimate Raised by William Blair

Key Points

• William Blair raised its FY2025 EPS estimate for Charles Schwab to $4.83, up from $4.66, while maintaining a "Hold" rating on the stock.
• Charles Schwab recently reported earnings of $1.31 EPS for the last quarter, exceeding consensus estimates of $1.25 with revenues of $6.14 billion, representing a 26.6% year-over-year increase.
• The company has initiated a $20 billion share buyback plan, indicating the board's belief that its shares are undervalued.

The Charles Schwab Corporation (NYSE:SCHW - Free Report) - Research analysts at William Blair raised their FY2025 earnings estimates for shares of Charles Schwab in a research report issued on Friday, October 17th. William Blair analyst J. Schmitt now anticipates that the financial services provider will post earnings of $4.83 per share for the year, up from their previous forecast of $4.66. William Blair has a "Hold" rating on the stock. The consensus estimate for Charles Schwab's current full-year earnings is $4.22 per share. William Blair also issued estimates for Charles Schwab's Q4 2025 earnings at $1.34 EPS, Q1 2026 earnings at $1.26 EPS, Q2 2026 earnings at $1.33 EPS, Q3 2026 earnings at $1.33 EPS, Q4 2026 earnings at $1.58 EPS, FY2026 earnings at $5.55 EPS, Q1 2027 earnings at $1.50 EPS, Q2 2027 earnings at $1.57 EPS, Q3 2027 earnings at $1.62 EPS and FY2027 earnings at $6.50 EPS.

SCHW has been the topic of several other reports. Zacks Research cut shares of Charles Schwab from a "strong-buy" rating to a "hold" rating in a report on Wednesday, September 17th. Piper Sandler restated a "neutral" rating on shares of Charles Schwab in a report on Tuesday, October 14th. Raymond James Financial restated an "outperform" rating and set a $99.00 price target on shares of Charles Schwab in a report on Friday, July 18th. Morgan Stanley lowered their price target on shares of Charles Schwab to $130.00 and set an "overweight" rating on the stock in a report on Wednesday, October 1st. Finally, TD Cowen boosted their price target on shares of Charles Schwab from $129.00 to $134.00 and gave the company a "buy" rating in a report on Friday. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating, five have assigned a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, Charles Schwab has a consensus rating of "Moderate Buy" and an average price target of $104.70.

Charles Schwab Price Performance

Shares of NYSE:SCHW opened at $94.17 on Monday. The company's fifty day moving average is $94.68 and its two-hundred day moving average is $89.76. The company has a quick ratio of 0.55, a current ratio of 0.55 and a debt-to-equity ratio of 0.47. Charles Schwab has a 12-month low of $65.88 and a 12-month high of $99.59. The company has a market cap of $170.93 billion, a P/E ratio of 22.05, a price-to-earnings-growth ratio of 0.88 and a beta of 0.97.

Charles Schwab (NYSE:SCHW - Get Free Report) last announced its earnings results on Thursday, October 16th. The financial services provider reported $1.31 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.25 by $0.06. Charles Schwab had a net margin of 35.93% and a return on equity of 21.26%. The company had revenue of $6.14 billion for the quarter, compared to the consensus estimate of $5.93 billion. During the same period in the previous year, the business earned $0.71 EPS. The company's revenue was up 26.6% on a year-over-year basis.

Charles Schwab announced that its board has initiated a share buyback plan on Thursday, July 24th that permits the company to buyback $20.00 billion in shares. This buyback authorization permits the financial services provider to purchase up to 11.6% of its stock through open market purchases. Stock buyback plans are usually a sign that the company's board of directors believes its shares are undervalued.

Charles Schwab Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, August 22nd. Investors of record on Friday, August 8th were issued a $0.27 dividend. The ex-dividend date was Friday, August 8th. This represents a $1.08 dividend on an annualized basis and a yield of 1.1%. Charles Schwab's dividend payout ratio is currently 25.29%.

Insider Transactions at Charles Schwab

In related news, insider Paul V. Woolway sold 3,205 shares of the company's stock in a transaction on Wednesday, October 1st. The shares were sold at an average price of $93.33, for a total value of $299,122.65. Following the completion of the sale, the insider directly owned 34,778 shares in the company, valued at approximately $3,245,830.74. This represents a 8.44% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, insider Nigel J. Murtagh sold 24,096 shares of the company's stock in a transaction on Tuesday, July 29th. The stock was sold at an average price of $97.91, for a total transaction of $2,359,239.36. Following the completion of the sale, the insider owned 58,999 shares of the company's stock, valued at $5,776,592.09. This represents a 29.00% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 267,128 shares of company stock valued at $26,232,077 in the last three months. 6.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Charles Schwab

Hedge funds have recently bought and sold shares of the company. Vanguard Personalized Indexing Management LLC boosted its holdings in Charles Schwab by 26.8% during the second quarter. Vanguard Personalized Indexing Management LLC now owns 190,538 shares of the financial services provider's stock valued at $17,387,000 after acquiring an additional 40,275 shares during the period. Bain Capital Public Equity Management II LLC bought a new stake in Charles Schwab during the first quarter valued at about $79,605,000. Independent Advisor Alliance boosted its holdings in Charles Schwab by 13.8% during the first quarter. Independent Advisor Alliance now owns 39,103 shares of the financial services provider's stock valued at $3,061,000 after acquiring an additional 4,754 shares during the period. Universal Beteiligungs und Servicegesellschaft mbH boosted its holdings in Charles Schwab by 6.2% during the first quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 1,181,563 shares of the financial services provider's stock valued at $92,493,000 after acquiring an additional 68,858 shares during the period. Finally, PFG Investments LLC boosted its holdings in Charles Schwab by 10.2% during the second quarter. PFG Investments LLC now owns 5,951 shares of the financial services provider's stock valued at $543,000 after acquiring an additional 550 shares during the period. 84.38% of the stock is currently owned by institutional investors.

Charles Schwab Company Profile

The Charles Schwab Corporation, together with its subsidiaries, operates as a savings and loan holding company that provides wealth management, securities brokerage, banking, asset management, custody, and financial advisory services in the United States and internationally. The company operates in two segments, Investor Services and Advisor Services.

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