Charles Schwab Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Charles Schwab (NYSE:SCHW) will unveil its latest earnings tomorrow, Wednesday, January 16, 2013. Charles Schwab is a savings and loan holding company. Through its subsidiaries, the company provides individuals and institutional clients with securities brokerage, banking and related financial services.

Charles Schwab Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 15 cents per share, a rise of 15.4% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 17 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 16 cents during the last month. Analysts are projecting profit to rise by 1.4% compared to last year’s 69 cents.

Past Earnings Performance: The company fell in line with estimates last quarter after topping forecasts the quarter before. After coming in above the mean estimate by 2 cents in the second quarter, the company fell in line with expectations by reporting profit of 17 cents per share last quarter.

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A Look Back: In the third quarter, profit rose 12.3% to $247 million (19 cents a share) from $220 million (18 cents a share) the year earlier, meeting analyst expectations. Revenue rose 0.2% to $1.25 billion from $1.25 billion.

Here’s how Charles Schwab traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

SCHW

Wall St. Revenue Expectations: On average, analysts predict $1.21 billion in revenue this quarter, a rise of 9% from the year-ago quarter. Analysts are forecasting total revenue of $4.88 billion for the year, a rise of 4.1% from last year’s revenue of $4.69 billion.

Analyst Ratings: There are mostly holds on the stock with eight of 15 analysts surveyed giving that rating.

Key Stats:

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 7.7% in the second quarter before climbing again in the third quarter.

The company enters this earnings announcement with steady profits recently. Net income has risen year-over-year average of 11.3% for the last four quarters.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)