NYSE$SCHW

Charles Schwab Corp · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Charles Schwab's Q1 2022 financial results reflected ongoing success with clients amidst a challenging environment.

Charles Schwab reported a net income of $1.4 billion for Q1 2022, a decrease compared to both Q4 2021 and Q1 2021. The company attracted 1.2 million new brokerage accounts and $121 billion in core net new assets. Total client assets reached $7.86 trillion, up 11% year-over-year.

  • Core net new assets totaled $120.5 billion, representing a 6% annualized organic growth rate.
  • Total client assets finished at $7.86 trillion, up 11% year-over-year.
  • The company attracted 1.2 million new brokerage accounts during the first quarter.
  • Trading activity averaged more than 6.5 million trades a day.

Headline financials

Total Revenue

$4.67B

Previous: $4.72B-0.9%
EPS (adj)

$0.77

Previous: $0.84-8.3%
Core Net New Assets

$121B

Previous: $134B-9.9%
Total Client Assets

$7.86T

Previous: $7.07T+11.2%
New Brokerage Accounts

1.2M

No prior period
Active Brokerage Accounts

33.6M

Previous: 31.9M+5.3%
Capital Expenditures

-$296M

Previous: -$186M-59.1%
Free Cash Flow

$1.11B

Previous: $1.3B-14.8%
Net Income

$1.4B

Previous: $1.48B-5.5%
Operating Income

$3.45B

Previous: $3.56B-2.9%
Gross Profit

$4.66B

Previous: $4.7B-0.9%
Cash & Equivalents

$91.1B

Previous: $48.2B+89.1%
Total Assets

$681B

Previous: $563B+20.9%
Stock-Based Comp

$144M

Previous: $100M+44.0%

Revenue & EPS history

Charles Schwab · Revenue · Quarterly

$4.67B

Q1 2022-0.9%vs Q1 2021
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Charles Schwab · $4.38B total across 4 segments · Q1 2022

  • Net Interest Revenue
    $2.18B+14.2%
  • Asset Mgmt/Admin Fees
    $1.07B+5.1%
  • Trading Revenue
    $963M-20.8%
  • Other Revenue
    $164M-25.8%

Forward guidance

The press release contains forward-looking statements relating to business momentum; strategic initiatives; TD Ameritrade integration; growth in the client base, accounts, and assets; investments to attract and retain talent, improve service and the client experience, expand products, services and offerings to meet client needs, diversify revenues, and drive scale and efficiency; expense management; balancing near-term profitability and long-term investment; capital management; and financial strength and flexibility.

Tailwinds

  • Ability to attract and retain clients and independent investment advisors and grow those relationships and client assets
  • Develop and launch new and enhanced products, services, and capabilities, as well as enhance its infrastructure and capacity, in a timely and successful manner
  • Hire and retain talent
  • Support client activity levels
  • Successfully implement integration strategies and plans

Headwinds

  • General market conditions, including equity valuations, trading activity, and the level of interest rates
  • Market volatility
  • Client use of the company’s advisory solutions and other products and services
  • Client sensitivity to rates
  • Level of client assets, including cash balances

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+0.8%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+2.7%

Avg return

30 days after

63%

46 / 73 earnings

Positive

+12.6%

Q2 2023

Best reaction

-15.0%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.1%+2.5%-0.1%
Q4 2025+0.6%-8.3%-9.4%
Q3 2025-1.0%+0.8%+0.1%
Q2 2025+2.3%+0.2%-2.1%
Q1 2025+0.6%+1.2%+17.2%
Q4 2024+5.5%+7.1%+7.1%
Q3 2024+6.3%+5.2%+18.2%
Q2 2024-15.0%-17.3%-13.1%
Q1 2024+4.3%+4.8%+12.4%
Q4 2023-2.5%-1.1%+0.1%
Q3 2023+4.6%-0.9%+9.3%
Q2 2023+12.6%+13.4%+1.9%
Q1 2023+6.4%+6.0%+2.1%
Q4 2022-8.6%-6.9%-3.8%
Q3 2022-0.5%+1.9%+12.2%
Q2 2022+1.6%+1.3%+21.4%
Q1 2022-7.1%-15.0%-23.5%
Q4 2021-4.2%-6.6%-10.0%
Q3 2021+3.1%+4.5%+5.1%
Q2 2021-5.5%-1.4%+4.9%
Q1 2021-4.0%-5.6%+8.6%
Q4 2020-0.2%-0.6%+5.4%
Q3 2020+5.8%+5.4%+23.9%
Q2 2020-6.2%-1.2%-1.7%
Q1 2020-4.4%+1.0%-10.1%
Q4 2019+2.6%+2.8%+0.2%
Q3 2019+3.4%+5.9%+15.0%
Q2 2019+2.3%+6.0%-9.3%
Q1 2019+0.7%+0.4%-5.8%
Q4 2018+6.0%+8.4%+4.8%
Q3 2018-1.6%-4.4%-4.4%
Q2 2018+6.2%+2.1%+0.1%
Q1 2018+5.0%+7.7%+15.4%
Q4 2017-0.4%-0.2%-6.1%
Q3 2017-3.0%-0.1%-0.4%
Q2 2017-1.8%-1.8%-7.6%
Q1 2017+0.4%+0.5%+0.5%
Q4 2016+2.8%+2.1%+3.0%
Q3 2016+0.8%+0.9%+14.8%
Q2 2016+1.7%+4.3%+11.4%
Q1 2016+0.4%
Q4 2015-1.9%
Q3 2015+3.2%
Q2 2015+3.4%
Q1 2015+0.2%
Q4 2014+0.3%
Q3 2014+0.9%
Q2 2014-1.2%
Q1 2014+6.1%
Q4 2013+2.8%
Q3 2013+6.5%
Q2 2013-3.5%
Q1 2013-1.9%
Q4 2012-0.3%
Q3 2012+2.9%
Q2 2012+2.6%
Q1 2012+0.9%
Q4 2011+2.0%
Q3 2011+1.7%
Q2 2011-12.5%
Q1 2011+1.0%
Q4 2007+1.1%
Q4 2010+1.1%
Q4 2009+1.1%
Q3 2010-3.5%
Q2 2010-3.4%
Q1 2010-0.5%
Q1 2009-0.5%
Q3 2008+1.1%
Q3 2009+1.1%
Q2 2008+9.8%
Q4 2008+9.8%
Q2 2009+9.8%

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