11:59 AM EDT, 10/07/2024 (MT Newswires) -- Charles Schwab's ( SCHW ) is expected to deliver Q3 EPS of $0.75 which would be in line with consensus estimates, Morgan Stanley said Monday in a note to clients.

The company is also expected to provide an update on its September/October recovery in cash sweep balances and net new assets, and there's also the potential for "initial color" on its 2025 guidance and pace of EPS improvement, the note said.

"New [management] team takes center stage on the conference call, with new CFO presenting for the first time," the note said. "We'll be listening closely to the new CFO, as well as the incoming CEO/current President, to see how strategy and tactics may evolve."

Morgan Stanley said it now expects a "slower EPS recovery" than expected.

The investment firm raised Schwab's 2024 EPS estimate by 2% to $3.12, which is about 2% above consensus estimates, but decreased the 2025 EPS estimate by 5% to $3.35, which is 13% below consensus, while the 2026 EPS estimate was cut by 6% to $4.71, which is 1% below consensus.

Morgan Stanley kept its equal-weight rating on Charles Schwab ( SCHW ) while cutting the price target to $68 from $70.

Charles Schwab ( SCHW ) is expected to report Q3 results on Oct. 15.

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