Charles Schwab (SCHW) reported a big earnings jump Monday, as investors cautiously eye industry results following the recent rout of banking stocks. SCHW stock rose in early Monday trading, struggling to turn a six-week sell down. Among Monday’s other bank earnings, M&T Bank (MTB) rallied, while asset manager State Street (STT) crumbled.
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JPMorgan (JPM) and Wells Fargo (WFC) kicked off bank earnings Friday with better-than-expected results. For Schwab, owner of TD Ameritrade, outlook, deposits and net interest margins were in focus as investors worry about contagion from the Silicon Valley Bank and Signature Bank panics spreading to Charles Schwab.
The company defended its financial status in March, noting it has a low loan-to-deposit ration. Charles Schwab reported $53 billion in net new client assets in March, the second-highest results for the month in company history, the top brass announced in early April.
Charles Schwab Earnings
Estimates: Analysts polled by FactSet expected Charles Schwab earnings to rebound nearly 17% year over year to 90 cents per share. Revenue was seen bouncing 10% to $5.137 billion.
Results: Schwab adjusted earnings leapt 20% to 93 cents per share while revenue rose 10% to $5.116 billion.
Charles Schwab decided to pause its share buyback program in light of the recent banking events and regulatory uncertainty, the company announced.
Outlook: Analysts forecast Q2 earnings of 85 cents per share, down 12% year over year. Wall Street projects full-year earnings of $3.63 per share, down roughly 7% from 2022.
Schwab Stock
SCHW stock rose more than 2.3% to 51.97 premarket Monday following results. Shares sunk nearly 40% so far this year following the March bank panic.
M&T Bank Rises On Earnings Beat
Meanwhile, Buffalo, N.Y.-based M&T Bank surged after beating earnings estimates early Monday.
M&T Bank earnings bolted 53% to $4.01 per share while revenue leapt 66% to $2.4 billion. FactSet analysts expected EPS of $3.94 on $2.38 billion in revenue. Net interest income doubled over the year to $1.818 billion, from $904 million in Q1 2022.
MTB stock swung up 3.7% to 120.93 premarket Monday following results. Shares tumbled roughly 20% year to date.
State Street Earnings Miss
Asset custodian State Street missed earnings estimates, reporting a 3.2% EPS decline to $1.52 while revenue ticked up to $3.1 billion. Analysts expected earnings of $1.65 per share on $3.12 billion in revenue.
STT stock unraveled nearly 10% premarket Monday following results, dropping to 72.18.
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Source: https://www.investors.com/news/charles-schwab-stock-rises-after-earnings-beat-pauses-buybacks-banks-roll-out-results-after-march-panic/?src=A00220&yptr=yahoo