The Charles Schwab Corp Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component The Charles Schwab Corp (NYSE:SCHW) will unveil its latest earnings on Monday, July 18, 2011. Charles Schwab Corp. 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.

The Charles Schwab Corp Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 20 cents per share, a rise of 17.6% from the company’s actual earnings for the same quarter a year ago. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged and it has not changed during the last month. For the year, analysts are projecting net income of 81 cents per share, a rise of more than twofold from last year.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the first quarter, it reported profit of 20 cents per share versus a mean estimate of 19 cents. Two quarters ago, it reported net income of 10 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $1.2 billion in revenue this quarter, a rise of 11.1% from the year ago quarter. Analysts are forecasting total revenue of $4.87 billion for the year, a rise of 14.6% from last year’s revenue of $4.25 billion.

Analyst Ratings: Analysts are bullish on this stock with 10 analysts rating it as a buy, none rating it as a sell and six rating it as a hold.

Key Stats:

The increase in profit in the first quarter breaks a streak of two consecutive quarters of year-over-year profit decreases. In the first quarter, net income rose 3950%, while the figure dropped 27.4% in the fourth quarter of the last fiscal year and 38% in the third quarter of the last fiscal year.

Revenue has now gone up for three straight quarters. In first quarter, revenue rose 20.2% to $1.26 billion while the figure rose 12.5% in the fourth quarter of the last fiscal year from the year earlier and 3.7% in the third quarter of the last fiscal year.

Competitors to Watch: optionsXpress Hldgs., Inc. (NASDAQ:OXPS), TD Ameritrade Holding Corp. (NASDAQ:AMTD), E TRADE Financial Corp. (NASDAQ:ETFC), Interactive Brokers Group, Inc. (NASDAQ:IBKR), LPL Investment Hldgs. Inc. (NASDAQ:LPLA), TradeStation Group, Inc. (NASDAQ:TRAD), Investment Tech. Group (NYSE:ITG), Bank of America Corp. (NYSE:BAC), Penson Worldwide, Inc. (NASDAQ:PNSN), Citigroup (NYSE:C)
and Raymond James Financial, Inc. (NYSE:RJF).

Stock Price Performance: During April 14, 2011 to July 12, 2011, the stock price had fallen $2.75 (-15.1%) from $18.16 to $15.41. The stock price saw one of its best stretches over the last year between April 27, 2011, and May 5, 2011, when shares rose for seven-straight days, rising 4.2% (+74 cents) over that span. Shares have been on a negative streak of late, closing down every day between July 11, 2011 and July 12, 2011. Shares are down $1.59 (-9.4%) year to date.

(Source: Xignite Financials)

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