FMP
Jan 19, 2023 9:04 PM - Davit Kirakosyan(Last modified: Dec 19, 2023 5:49 PM)
The Charles Schwab Corporation (NYSE:SCHW) dropped more than 8% since the company’s reported worse-than-expected Q4 results on Wednesday and a double downgrade from BofA Securities today. EPS came in at $1.07, compared to the Street estimate of $1.09. Revenue was $5.5 billion, missing the Street estimate of $5.56 billion.
Net interest revenue grew 33% year-over-year to $10.7 billion, as higher interest rates outweigh the negative effects of balance sheet contraction caused by client cash sorting.
Analysts at Deutsche Bank view the quarterly results as being mixed, with better-than-expected NII, cost control, and capital return, offset by weaker fees in the Ameritrade Bank Deposit Account (BDA), as well as fee rate pressure in asset management & admin services.
While the analysts now expect lower revenue yield in the BDA to reduce the company's 2023 EPS growth rate to 23-24% from 27% previously, they continue to expect EPS growth to exceed 20% in 2023 and 2024, after EPS growth of 20% in 2022 & 37% in 2021.
Oct 31, 2023 8:03 AM - Parth Sanghvi
Free cash flow to the firm (FCFF) and free cash flow to equity (FCFE) are two of the most important metrics used in financial modeling. Both metrics measure the amount of cash that is available to a company's shareholders and creditors, but there is a key difference between the two. FCFF measures...
Nov 25, 2023 6:39 AM - Parth Sanghvi
Choosing the Right Valuation Method: DCF vs. Comparable Companies Analysis Introduction: Valuation methods play a pivotal role in determining the fair value of a company, aiding investors in making informed investment decisions. Two commonly used methods, DCF Valuation and Comparable Companies A...
Dec 23, 2023 2:19 AM - Parth Sanghvi
Introduction: Discounted Cash Flow (DCF) analysis stands as a cornerstone in valuing investments, yet its efficacy is contingent upon various assumptions and methodologies. While a powerful tool, DCF analysis comes with inherent limitations and challenges that investors must acknowledge to make i...