NYSE$SCHW

Charles Schwab Corp · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Charles Schwab's Q4 2022 earnings demonstrated growth in net income and EPS, driven by a rise in net revenues.

Charles Schwab reported a strong Q4 2022, with net income reaching $2.0 billion, a 25% increase year-over-year. Earnings per share also saw a significant rise, climbing to $0.97. The company's success was underpinned by a 17% increase in net revenues, which totaled $5.5 billion.

  • Net income for Q4 2022 increased by 25% to $2.0 billion compared to Q4 2021.
  • Earnings per share (EPS) rose to $0.97, a 28% increase from $0.76 in Q4 2021.
  • Net revenues for Q4 2022 grew by 17% to $5.5 billion compared to $4.7 billion in Q4 2021.
  • The company added over 4 million new brokerage accounts, bringing the total to nearly 34 million.

Headline financials

Total Revenue

$5.5B

Previous: $4.71B+16.8%
EPS (adj)

$1.07

Previous: $0.86+24.4%
Total Client Assets

$7.05T

Previous: $8.14T-13.4%
New Brokerage Accounts

931.0K

Previous: 1.3M-29.4%
Active Brokerage Accounts

33.8M

Previous: 33.2M+1.8%
Capital Expenditures

$202M

Previous: $313M-35.5%
Free Cash Flow

-$2.31B

Previous: $5.33B-143.4%
Net Income

$1.97B

Previous: $1.58B+24.6%
Operating Income

$2.6B

Previous: $2.02B+28.4%
Gross Profit

$5.5B

Previous: $4.71B+16.8%
Cash & Equivalents

$40.2B

Previous: $63B-36.2%
Total Assets

$552B

Previous: $667B-17.3%
Stock-Based Comp

$85M

Previous: $47M+80.9%

Revenue & EPS history

Charles Schwab · Revenue · Quarterly

$5.5B

Q4 2022+16.8%vs Q4 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Charles Schwab · $5.15B total across 4 segments · Q4 2022

  • Net Interest Revenue
    $3.03B+41.4%
  • Asset Mgmt/Admin Fees
    $1.05B-5.5%
  • Trading Revenue
    $895M-12.0%
  • Other Revenue
    $174M+28.9%

Forward guidance

Management provided forward guidance, outlining both positive and negative factors expected to influence the company's performance.

Tailwinds

  • Ongoing preparations for the largest broker-dealer integration in our industry’s history
  • Further empower investors with more personalization options
  • Increased access to high-quality products
  • Evolved suite of tools and solutions
  • Leading value proposition to RIAs by expanding our institutional no transaction fee mutual fund platform

Headwinds

  • Emerging concerns around inflation and global market stability became reality, with Russia’s invasion of Ukraine exacerbating the impact.
  • Equity markets suffered their worst year since 2008
  • The Federal Reserve tightened short-term rates at the fastest pace in 40 years
  • Uncertainty around future economic growth increased during the back half of the year, weighing on longer-term rates and leading to an inverted yield curve.
  • Persistent bearish sentiment amongst investors for most of the year

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 2022

Historical avgQ4 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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