Financial services company Charles Schwab (SCHW) saw its stock rally Tuesday after posting its Q4 earnings report. That’s partially due to its adjusted earnings per share of $1.01 beating Wall Street’s estimate of 91 cents for the quarter. This also represents a 49% increase year-over-year from 68 cents per share.
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Another win for Charles Schwab is its revenue of $5.329 billion, which is better than analysts’ estimate of $5.2 billion for Q4. This represents 20% revenue growth year-over-year from $4.459 billion. Fueling that was a 19% increase in total client assets, a 20% jump in core net new assets, a 23% rise in new brokerage account openings, and an 11% increase in trading activity.
Speaking about the Q4 earnings results, Charles Schwab CEO Rick Wurster noted the company “added $115 billion in core net new assets.” This brought asset gathering to $367 billion in 2024, representing a 4.3% annualized growth rate. He attributes this to the company’s “ongoing progress following the Ameritrade integration.”
How This Affects SCHW Stock Today
Charles Schwab shareholders are pleased with the most recent earnings data. SCHW stock rose 5.18% during pre-market trading today, building on a 21.87% increase over the last year, and a 3.24% rally year-to-date.
Is SCHW Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Charles Schwab is Moderate Buy based on nine Buy, six Hold, and one Sell ratings over the last three months. With that comes an average price target of $86.88, a high of $98, and a low of $70. This represents a potential 13.7% upside for SCHW shares. These ratings and price targets will likely change as analysts update their coverage following today’s earnings report.
