NYSE$SCHW

Charles Schwab Corp · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Charles Schwab reported Q4 2020 earnings with increased revenue and adjusted EPS, driven by record client engagement and the acquisition of TD Ameritrade.

Charles Schwab reported a strong fourth quarter in 2020, marked by record operating performance and the closing of the TD Ameritrade acquisition. Net income for the quarter was $1.1 billion, or $0.57 per share, while adjusted EPS reached $0.74. The company saw record client engagement, contributing to a significant rise in core net new assets and total client assets.

  • Schwab's net income for Q4 2020 was $1.1 billion, or $0.57 per share, compared to $852 million in Q4 2019.
  • Adjusted EPS for Q4 2020 was $0.74, up from $0.63 in Q4 2019.
  • Core net new assets rose 33% to a record $281.9 billion for the year, including $61.7 billion in December.
  • Total client assets reached a record $6.69 trillion at year-end, up 66% from a year ago.

Headline financials

Total Revenue

$4.18B

Previous: $2.61B+60.2%
EPS (adj)

$0.74

Previous: $0.62+19.4%
Total Client Assets

$6.69T

Previous: $4.04T+65.6%
Active Brokerage Accounts

29.6M

Previous: 12.3M+140.2%
Capital Expenditures

$166M

Previous: $193M-14.0%
Free Cash Flow

$13.1B

No prior period
Net Income

$1.14B

Previous: $852M+33.2%
Operating Income

$1.48B

Previous: $1.11B+32.7%
Gross Profit

$4.18B

Previous: $2.61B+60.2%
Cash & Equivalents

$40.3B

No prior period
Total Assets

$549B

No prior period
Stock-Based Comp

$80M

Previous: $52M+53.8%

Revenue & EPS history

Charles Schwab · Revenue · Quarterly

$4.18B

Q4 2020+60.2%vs Q4 2019
Beat estimate in 7 of 16 quarters(44%)
ActualEstimate

Revenue by segment

Charles Schwab · $3.82B total across 4 segments · Q4 2020

  • Net Interest Revenue
    $1.81B
  • Asset Mgmt/Admin Fees
    $987M
  • Trading Revenue
    $854M
  • Other Revenue
    $171M

Forward guidance

Charles Schwab's management provided forward guidance indicating a focus on integrating TD Ameritrade, managing expenses, and continuing to invest in technology and client experience.

Tailwinds

  • Successful integration of TD Ameritrade is expected to yield significant revenue and expense synergies.
  • Continued investments in technology are aimed at improving both the client experience and operational efficiency.
  • Focus on building a strong balance sheet to support the business in varying economic environments.
  • Commitment to managing expenses while driving strategic progress.
  • Dedication to serving clients with clarity and focus, regardless of market circumstances.

Headwinds

  • Ongoing uncertainty related to the COVID-19 pandemic and its potential impact on markets and client behavior.
  • Potential for continued low interest rates to pressure net interest revenue.
  • Challenges associated with integrating large acquisitions and managing associated costs.
  • Risk of market volatility affecting client asset levels and trading activity.
  • Unpredictability of future economic conditions and their impact on the financial services industry.

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 Q4 2020

Historical avgQ4 2020

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro