Earnings Preview: Charles Schwab Reports Results Wednesday

| About: The Charles (SCHW)

The Charles Schwab Corporation (NYSE:SCHW) is scheduled to release last fiscal quarter's results before the opening bell on January 18, 2012. Let's take a look at how The Charles Schwab has done in recent quarters.

SCHW trades an average of 11 million shares per day.

52-Week High: $19.69
52-Week Low: $10.56
Book Value: $6.03
Float Short: 2.36%

On average, analysts are expecting a drop of $-0.06 in earnings per share compared to last quarter's results of $0.19. The reporting quarter's estimated mean earnings are $0.13 per share. The current trailing twelve months P/E ratio is 18.1. The forward P/E ratio is 16.81.

Investors have been rewarded with an increase of year-over-year revenue. Revenue reported was $4.25 billion for 2010 vs. $4.2 billion for 2009. Schwab has been trending sideways since summer and appears to be near the upper end of the channel. With the 200-day moving average falling and above the current price, I would not get excited to buy in front of earnings. So far this year the price has done well, and while it's great to see a stock moving higher in front of the earnings, it's just not enough. If I did already own shares, I would be looking to sell covered calls to capture what may be increased premium during the last week before options expiration and ahead of earnings.

Gross reported revenue compared to the mean estimate (rounded):

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Sep-11 $ 1.19 B $ 1.18 B $ -13.97 M -1.17%
Jun-11 $ 1.19 B $ 1.19 B $ 3.08 M 0.26%
Mar-11 $ 1.18 B $ 1.21 B $ 23.88 M 2.02%
Dec-10 $ 1.10 B $ 1.13 B $ 22.13 M 2%
Sep-10 $ 1.06 B $ 1.06 B $ 2.39 M 0.23%
M = millions, B = billions.
Differences are rounded.
Some one-time items are often excluded in reported EPS.

paid2trade.com Quarterly Estimates And Actual EPS results SCHW Reported earnings per share compared to the mean estimate. Differences are rounded.

The total short interest number of shares for SCHW:

paid2trade.com short interest tool. The total short interest number of shares for SCHW

The number of days to cover short interest based on average daily trading volume for SCHW:

paid2trade.com number of days to cover short interest based on average daily trading volume for SCHW

I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the confirmed symbols from earnings.com that I believe to be of the most interest.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.