Charles Schwab Q4 Profits in Line with Consensus, Up +16% Year-Over-Year (SCHW)

Online brokerage company Charles Schwab Corp (SCHW) reported its fourth quarter earnings on Wednesday, posting a profit that was up +16% from a year ago and in line with Wall Street analyst estimates.

The San Francisco, California-based online broker said that its fourth quarter net income rose 16% to $189 million, or 15 cents per share, compared to $163 million, or 13 cents per share, earned a year ago. Wall Street analysts polled by FacSet expected SCHW to earn 15 cents per share.

Revenue edged +10% higher for the fourth quarter, coming in at $1.22 billion compared to $1.11 billion a year earlier. The consensus analyst view was that the company would see $1.21 billion in revenue.

Charles Schwab, along with its competitors, has struggled to draw in clients as interest rates have dropped to record lows. To combat this, the company has started to waive fees to bring in customers. This has put a strain on overall revenue and profits.

Charles Schwab shares were down 23 cents, or -1.50%, during morning trading on Wednesday. The stock is up +25.74% over the past year.

The Bottom Line
Shares of Charles Schwab (SCHW) have a 1.57% dividend yield, based on last night’s closing stock price of $15.29. The stock has technical support in the $13-$14 price area. If the shares can firm up, we see overhead resistance around the $16-$17 price levels.

Charles Schwab Corp (SCHW) is not recommended at this time, holding a DARS™ Rating of 3.2 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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