SCHW Q3 2018 Earnings Report — The Charles Schwab Corporation Revenue & Financial Results | Market Cap Arena

The Charles Schwab CorporationSCHW

Q3 2018 Earnings

Reported November 7, 2018

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q3 2018	Q2 2018	Q3 2017	QoQ Change	YoY Change
Revenue	$2.8B	$2.7B	$2.3B	5.2%	24.3%
Op. Income	$1.2B	$1.1B	$945M	7.8%	29.0%
Gross Margin	91.9%	93.1%	95.8%	-1.3pp	-4.0pp
Net Margin	32.9%	32.4%	27.4%	0.4pp	5.5pp
EPS (Diluted)	$0.65	$0.60	$0.42	8.3%	54.8%
Free Cash Flow	$1.1B	$3.0B	$3.2B	-62.4%	-64.8%

Revenue Flow

Item	Amount
REVENUE	$2.8B
Cost of Revenue	$228M
GROSS PROFIT	$2.6B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$923M
Other Expenses	$437M
Operating Expenses	$1.4B
Cost & Expenses	$1.6B
OPERATING INCOME	$1.2B
Interest Income	$1.8B
Interest Expense	$228M
Other Income/Expenses	$0
INCOME BEFORE TAX	$1.2B
Income Tax Expense	$296M
Net Income from Continuing Ops	$923M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$923M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$885M
D&A	$78M
EBIT	$1.2B
EBITDA	$1.3B
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$2.8B
Cost of Revenue	$228M
GROSS PROFIT	$2.6B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$0
SG&A Expenses	$923M
Other Expenses	$437M
Operating Expenses	$1.4B
Cost & Expenses	$1.6B
OPERATING INCOME	$1.2B
Interest Income	$1.8B
Interest Expense	$228M
Other Income/Expenses	$0
INCOME BEFORE TAX	$1.2B
Income Tax Expense	$296M
Net Income from Continuing Ops	$923M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$923M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$885M
D&A	$78M
EBIT	$1.2B
EBITDA	$1.3B
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$923M
Depreciation & Amortization	$78M
Stock-Based Compensation	$30M
Deferred Income Tax	$0
Other Non-Cash Items	$120M
Change in Working Capital	$124M
OPERATING CASH FLOW	$1.3B
Capital Expenditure	-$147M
Acquisitions (Net)	$0
Purchases of Investments	-$16.2B
Sales/Maturities of Investments	$10.0B
Other Investing Activities	-$14M
NET CASH FROM INVESTING	-$6.4B
Net Debt Issuance	-$2M
Common Stock Repurchased	$0
Common Dividends Paid	-$225M
Other Financing Activities	$13.5B
NET CASH FROM FINANCING	$13.3B
FREE CASH FLOW	$1.1B
Net Change in Cash	$8.2B

Balance Sheet

Item	Amount
Cash & Equivalents	$21.8B
Short-Term Investments	$57.6B
Net Receivables	$23.2B
Inventory	$0
Other Current Assets	$0
TOTAL CURRENT ASSETS	$102.6B
PP&E (Net)	$1.7B
Goodwill	$1.2B
Intangible Assets	$0
Long-Term Investments	$156.0B
Tax Assets	$0
Other Non-Current Assets	$10.6B
TOTAL NON-CURRENT ASSETS	$169.5B
TOTAL ASSETS	$272.1B
Account Payables	$29.4B
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$213.4B
TOTAL CURRENT LIABILITIES	$245.5B
Long-Term Debt	$5.7B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$245.5B
TOTAL NON-CURRENT LIABILITIES	$251.3B
TOTAL LIABILITIES	$251.3B
Common Stock	$15M
Additional Paid-In Capital	$4.5B
Retained Earnings	$16.6B
Treasury Stock	-$2.8B
Accum. Other Comp. Income	-$304M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$20.8B
Minority Interest	$0
TOTAL EQUITY	$20.8B
TOTAL LIABILITIES & EQUITY	$272.1B
Total Debt	$5.8B
Net Debt	-$16.0B