Technical Analysis – 17 October 2023

Shares closed higher above the 5dEMA with constructive volume. 20dEMA is about to cross the 50dEMA.
MACD is positive, RSI is constructive.
Long – Entry 63.0, Target 69.0, Stop 60.0

Shares closed above the 5dEMA with an incline in volume. The 5dEMA rose above the 20dEMA.
RSI is constructive, while MACD is negative.
Long – Entry 14.32, Target 15.32, Stop 13.82

Charles Schwab Corp/The (SCHW)

3Q23 Revenue: $4.61B, -16.2% YoY, in-line with estimates
3Q23 Non-GAAP EPS: $0.77, beat estimates by $0.03
FY23 Guidance: Revenue is expected to decline by 8%-9% YoY, compared with the -7.9% average analyst estimate. Expense growth, on an adjusted basis, is seen growing 6% in FY23.
Comment: Charles Schwab reported Q3 earnings that exceeded Wall Street expectations, driven by growth in its asset management business. The company’s fees rose by 17% to $1.22 billion due to strong inflows into its various funds. However, its net interest revenue decreased by 23.5% to $2.24 billion, reflecting the impact of client allocation decisions in a higher-interest-rate environment. Charles Schwab’s net new assets experienced some attrition due to the absorption and conversion of TD Ameritrade accounts, but the company remains optimistic about its growth prospects. The firm sees net interest margin rebounding through 2024 and approaching 3% by the end of 2025. Despite the favourable high interest rate environment, expected to be advantageous for Charles Schwab, the company is likely to face ongoing challenges in maintaining its net interest revenue in Q4 due to the decline in customer deposits. However, this decline may be partially offset by the company’s cost-cutting measures alongside increased fee income. 4Q23 recommended trading range: $50 to $56. Neutral Outlook.

嘉信理财 (SCHW)

23财年第三季营收：46.1亿美元, 同比跌幅16.2%，符合预期
23财年第三季Non-GAAP每股盈利：0.77美元，超预期0.03美元
23财年指引：营收预计将同比下降8%至9%，而分析师的平均预期为下降7.9%。经调整后的支出增长预计将在23财年增长6%。
短评：嘉信理财公布，因受资产管理业务增长的推动，其第三季度收益超出了华尔街的预期。由于各种基金的资金流入强劲，该公司的费用增长了17%，达到12.2亿美元。然而，其净利息收入下降23.5%至22.4亿美元，反映了客户在高利率环境下配置决策的影响。嘉信理财的净新增资产因吸纳和转换TD Ameritrade账户而出现了一些损耗，但该公司对其增长前景仍持乐观态度。该公司预计，到2024年净息差将反弹，到2025年底将接近3%。尽管高利率环境对嘉信理财有利，但由于客户存款下降，该公司可能在第四季度维持净利息收入方面面临持续挑战。然而，这种下降可能会部分被公司削减成本的措施和增加的费用收入所抵消。23财年第四季度建议交易区间：50美元至56美元。中性前景。