Westlake, Texas-based The Charles Schwab Corporation (SCHW) operates as a savings and loan holding company. With a market cap of $115.2 billion, Charles Schwab provides various services, including wealth management, securities brokerage, banking, asset management, custody, and financial advisory. The capital markets giant is expected to release its Q3 earnings on Monday, Oct. 21.

Ahead of the event, analysts expect Charles Schwab to report a profit of $0.75 per share, down 2.6% from $0.77 per share reported in the year-ago quarter. The company has consistently matched or surpassed Wall Street’s EPS estimates in each of the past four quarters. Its EPS for the last reported quarter declined by 2.7% year-over-year to $0.73 but still managed to perfectly align with the consensus estimates.

Looking ahead to fiscal 2024, analysts expect Charles Schwab to report an EPS of $3.05, down 2.6% from $3.13 in fiscal 2023. However, in fiscal 2025, its EPS is expected to grow 29.5% year-over-year to $3.95.

SCHW stock has dipped 7.1% on a YTD basis, substantially lagging behind the S&P 500 Index’s ($SPX) 19.7% gains and the Financial Select Sector SPDR Fund’s (XLF) 19.9% returns over the same time frame.

Shares of Charles Schwab plummeted 10.2% and continued to fall for the next three trading sessions after the release of its Q2 earnings on Jul. 16. Despite a notable 17.9% year-over-year increase in asset management and administration fees, reaching $1.4 billion, the company’s overall performance was lackluster. Its net interest revenue fell by 5.8% year-over-year to $2.2 billion, trading revenues decreased by 3.2% to $777 million, and bank deposit account fees dropped by 12.6% to $153 million. These declines hindered any substantial growth in total net revenues, growing marginally to $4.7 billion.

However, effective cost management enabled Charles Schwab to report a 3.2% year-over-year increase in net income available to common shareholders, amounting to $1.2 billion.

The consensus opinion on SCHW stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 20 analysts covering the stock, nine suggest “Strong Buy,” two recommend “Moderate Buy,” seven advise “Hold,” one advocate “Moderate Sell,” and one gives a “Strong Sell” rating.

The mean price target of $73.89 suggests a potential upside of 15.6% from current price levels.

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On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.