Overview

* Charles Schwab ( SCHW ) Q3 revenue grows 27% yr/yr, beating analysts' expectations

* Adjusted EPS for Q3 beats consensus, rising 70% yr/yr

* Company repurchased 28.9 mln shares for $2.7 bln during Q3

Outlook

* Company did not provide specific future guidance

Result Drivers

* ORGANIC GROWTH - Strong organic growth trends and increased adoption of wealth solutions contributed to record revenue and earnings, per CEO Rick Wurster

* CLIENT CASH MANAGEMENT - Client transactional sweep cash increased by $13.5 bln from Q2, aiding reduction of higher-cost bank funding by $12.9 bln, per CFO Mike Verdeschi

* CAPITAL RETURN - Co repurchased 28.9 mln shares for $2.7 bln, complementing strong business momentum, per CFO Mike Verdeschi

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $6.13 $6 bln

Revenue bln (13

Analysts

)

Q3 Beat $1.31 $1.24

Adjusted (17

EPS Analysts

)

Q3 EPS $1.26

Q3 Net $2.40

Income bln

Q3 Net 2.86%

Interest

Margin

(%)

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

* The average consensus recommendation for the investment banking & brokerage services peer group is "buy"

* Wall Street's median 12-month price target for Charles Schwab Corp ( SCHW ) is $110.00, about 14.2% above its October 15 closing price of $94.33

* The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)