Charles Schwab Analysts Increase Their Forecasts After Upbeat Results

The Charles Schwab Corporation SCHW reported upbeat fourth-quarter results on Tuesday.

Revenue rose 20% year over year to $5.33 billion, beating the consensus of $5.19 billion.

Net interest revenue rose 19% Y/Y to $2.531 billion in the fourth quarter. Clients’ daily average trades totaled 6.312 million, up 22% Y/Y.

Adjusted net income rose 44% Y/Y to $1.97 billion. Adjusted EPS increased 49% to $1.01, beating the consensus of $0.91.

Total client assets rose 19% Y/Y to $10.10trillion. The company’s active brokerage accounts reached 36.5 million in the quarter.

Mike Verdeschi, CFO, said, “Client transactional sweep cash grew by $35 billion versus 3Q24, including a $25 billion increase in December due to typical year-end seasonality. This build helped us further reduce Bank Supplemental Funding by $14.9 billion to $49.9 billion – down ~50% from peak levels.”

Charles Schwab shares gained 5.9% to close at $80.93 on Tuesday.

These analysts made changes to their price targets on Charles Schwab following earnings announcement.

• Wells Fargo analyst Michael Brown upgraded Charles Schwab from Equal-Weight to Overweight and raised the price target from $89 to $93.
• Barclays analyst Benjamin Budish maintained the stock with an Overweight and raised the price target from $95 to $96.
• Citigroup analyst Christopher Allen maintained Charles Schwab with a Neutral and raised the price target from $80 to $85.
• Deutsche Bank analyst Brian Bedell maintained Charles Schwab with a Buy and boosted the price target from $98 to $105.

Considering buying SCHW stock? Here’s what analysts think:

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