Charles Schwab (SCHW.US) stock fell over 2.05 on Wednesday after finiacial servies company posted slightly weaker than expected results for Q4 2022. The company's net profit improved compared to Q4 2021, however, revenues and profits from customer trading decreased.
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Revenue: $5.5 billion vs. $5.56 billion expected (approx. 17% increase y/y)
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Earnings per share (EPS): $1.07 vs. $1.09 expected
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Net profit: $2 billion vs. $1.9 billion expected and $1.6 billion in Q4 2021
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The number of investment accounts increased by 4 million throughout 2022. Despite this, revenue from customer trading in Q4 amounted to $895 million and was over 10% lower compared to Q4 2021, when it amounted to USD 1 billion;
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Higher interest rates had a positive impact on the results due to an increase in net interest income. Cost-adjusted interest income reached $3 billion, compared to $2.1 billion in Q4 2021;
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Total net profit for 2022 amounted to $7.2 billion, which is a 23% increase on an annual basis. The company's revenues in 2022 increased by 12% and amounted to $20.8 billion, which gave a profit per share of $3.9.
Highlights of Charles Schwab Q4 2022 earnings report. Source: AlphaStreet
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Open account Try demo Download mobile app Download mobile appInvestors may remain cautious about Charles Schwab shares, as it is not certain how the economic slowdown will affect the company's results in the future.
Charles Schwab (SCHW.US) stock started today's session with a bearish pricegap. Nevertheless downward movement was halted around the upward trendline at $80 per share. Nevertheless bears still seem to have control, and a potential break below $80 per share could lead to a broader sell-off. Source: xStation5
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