Charles Schwab Reports Q4 Beat, Exceeding Wall Street Estimates
Charles Schwab Corp. (NYSE: SCHW) reported fourth-quarter and full-year results that surpassed analyst expectations, driven by strong inflows to its retail brokerage.
Q4 Performance
* Revenue: $5.33 billion, surpassing estimates of $5.19 billion
* Adjusted EPS: $1.01, exceeding forecasts
Full-Year Performance
* Revenue growth of 4%, exceeding guidance range of 3% to 3.5%
* Full-year net inflows of $55 billion to managed investing business
* Converted TD Ameritrade clients contributed 35% to inflows
Business Highlights
* Schwab expects revenue growth of 13% to 15% in 2023.
* The firm plans to add over a dozen new branches and relocate existing locations to areas with increased foot traffic.
* Schwab is diversifying its customer base, with 33% of new retail households under age 30 and over 50% under age 40.
* The company completed the integration of TD Ameritrade clients, bringing over 17 million accounts to its platform.
Executive Outlook
"We are in a position of strength and poised for liftoff in 2025," said CEO Rick Wurster. "With integration behind us, we are focused on helping our clients while growing and deepening relationships."
CFO Mike Verdeschi indicated that Schwab will continue to build its momentum and explore various forms of capital returns over the year.