Charles Schwab (SCHW) stock traded more than 5% higher following the company’s earnings report on Tuesday morning.
For the quarter, the bank and brokerage company marked a notable resurgence under its new CEO Rick Wurster, who took the helm on January 1.
The financial services giant, which generates over 75% of its sales from investor services, celebrated a robust top and bottom-line beat for Q4, impressing investors and pushing the stock higher today.
Schwab’s revenue came in $0.10 better than analysts had expected to see at $1.01. The revenue beat was generated from strong revenue of $5.329 billion, ahead of the company’s target of $5.195 billion.
The company’s revenue beat is a full 19.5% higher than the same quarter last year putting Schwab at the top of the revenue growth list for banks this earnings season.
Charles Schwab's success comes after a pivotal year marked by the largest brokerage conversion in its history.
In 2024, Schwab successfully integrated over 17 million Ameritrade accounts, which contributed to back-to-back quarters of impressive growth. This resurgence is a significant turnaround from the slower growth observed in earlier quarters.
Since these changes, Schwab has seen its stock rebound by over 30% since the July lows.
Net new assets grew by 51% year-over-year this quarter, with new brokerage accounts opened up by 23% to 1.1 million.
The growth brought the total to 36.5 million active accounts by year-end. Trading activity also remained robust, contributing to a record level of client engagement.
The positive results and outlook have Schwab shares trading towards a bullish breakout in the stock.
Shares Jumped back to their recent highs of $82.50 and reversed lower for the day, but that’s likely to change.
The stock’s 50-day moving average recently shifted back into a bullish trend, indicating that positive momentum has returned to Schwab stock. The stock saw a similar pattern in October ahead of a 25% rally in Charles Schwab stock.
From a long-term perspective, Charles Schwab stock remains in a bull market trend with a target price of $95.
