Boston, MA 04/14/2014 (wallstreetpr) – Charles Schwab Corp (NYSE:SCHW) is a financial services organization with market value of $32 billion. The company is scheduled to report first quarter earnings Tuesday.
The company is expected to report higher profits for the first quarter. Consensus earnings estimates for the stock have gone up over the past months, suggesting that analysts are optimistic about strong performance for the company in the anticipated quarter results.
On average, analysts are calling for profit of $0.22 per share for the first quarter. That will be an increase from $0.15 per share registered in the first quarter of 2013. Consensus earnings estimates for the stock have increased over the few months from $0.20 to $0.22. On the revenue front, analysts are expecting $1.47 billion, which will be 11 percent above the prior year’s revenue of $1.33 billion.
For the full-year 2014, EPS is projected to come in at $0.96 while revenue is expected to come in at $6.05 billion.
Decent performance track record
Although the investment services industry has had its ups and downs, Charles Schwab Corp (NYSE:SCHW) has managed to overcome many challenges in the past quarters during which its peers had very little to smile about.
The company’s aggressive marketing and industry leading financial solutions helped it to keep revenue growing. The company’s revenue jumped consistently over the past three quarters, a track record that is rare in the broader market. Revenue in the fourth quarter jumped 10 percent to $1.46 billion. That jump was preceded by a 12 percent year-over-year revenue increase in the third quarter and 2 percent increase in the second quarter.
As revenue increases, decent growth in net income has also been noted over the past quarters. The most recent quarter saw income up 55 percent year-over-year. The average increase in net income over the past four consecutive quarters is 18 percent.
Stock performance
Although Charles Schwab Corp (NYSE:SCHW) is projected to report profit growth, the stock price does not look strong enough for bigger uptrend down the road. The consensus recommendation for the stock is hold, suggesting that the stock has already covered much ground in its upward rally, and there is little room left in the short-term.
