Will SCHW's earnings momentum continue in 2025?

**Charles Schwab's (SCHW) earnings momentum is likely to continue in 2025**, based on several key indicators: 1. **Earnings Estimates Increase**: Zacks Research has raised its Q1 2025 earnings estimate for Charles Schwab to $0.95 per share, up from $0.94. This increase reflects a positive outlook on the company's earnings potential. 2. **Revenue Growth Prospects**: The company's core net new assets experienced a 44% year-over-year increase, with $48.0 billion in new assets reported for February 2025. This growth in net new assets is a strong indicator of increased revenue potential. 3. **Market Sentiment and Fundamentals**: Despite market concerns about valuation, Charles Schwab's fundamentals remain strong. The company has a 97% gross profit margin and has consistently paid dividends for 37 consecutive years. Additionally, the recent repurchase of shares from TD Bank has eliminated a sentiment overhang, focusing investor attention on the company's strengthening fundamentals. 4. **Strategic Positioning**: Schwab's acquisitions, such as the buyout of TD Ameritrade, have strengthened its position in the market. These strategic moves are likely to contribute to continued earnings growth as the company capitalizes on these acquisitions. 5. **Dividend History**: The company's consistent dividend payments suggest a stable financial outlook, which is a positive sign for earnings sustainability. In conclusion, Charles Schwab's earnings momentum is expected to continue in 2025 due to a combination of increased earnings estimates, revenue growth prospects, strong market sentiment, strategic positioning, and consistent dividend payments. These factors collectively provide a solid foundation for the company's continued earnings success in the coming year.