Shares of financial services provider Charles Schwab (NYSE:SCHW) are ticking higher in the early session today after the company delivered a mixed set of fourth-quarter numbers. Revenue declined by 19% year-over-year to $4.46 billion, missing expectations by $30 million. EPS of $0.68, on the other hand, fared better than estimates by $0.04.
For Fiscal Year 2023, revenue declined by 9% to $18.84 billion, and adjusted net income contracted by 22% to $6.16 billion. The company added 977,000 new-to-firm retail households and 3.8 million new brokerage accounts during the year. Further, its total client assets ballooned by $306 billion to $8.52 trillion.
Charles Schwab took a charge of $172 million from the FDIC special assessment. Additionally, restructuring costs for the year stood at $495 million. At the same time, SCHW expects to realize cost savings of $500 million in 2024.
Is Charles Schwab a Good Buy?
Overall, the Street has a Moderate Buy consensus rating on Charles Schwab, and the average SCHW price target of $73.94 implies a nearly 15% potential upside in the stock. That’s on top of a 12% jump in the company’s share price over the past six months.
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