Raymond James Financial (NYSE:RJF) Announces Quarterly Earnings Results, Beats Estimates By $0.33 EPS

Raymond James Financial (NYSE:RJF) released its earnings results on Wednesday. The financial services provider reported $3.59 earnings per share for the quarter, topping analysts’ consensus estimates of $3.26 by $0.33, FiscalAI reports. The business had revenue of $4.27 billion for the quarter, compared to the consensus estimate of $4.20 billion. Raymond James Financial had a return on equity of 19.52% and a net margin of 13.50%. The firm’s revenue for the quarter was up 14.5% compared to the same quarter last year. During the same period last year, the business earned $3.11 earnings per share.

Here are the key takeaways from Raymond James Financial’s conference call:

• Record fourth-quarter and fiscal-year results: Net revenue reached $4.27 billion and adjusted EPS was $3.59, while adjusted pre-tax margin came in at 21.3%, above the approximately 20% target.
• Private Client Group momentum remained strong, with client assets under administration up 12% year over year to $1.87 trillion and domestic net new assets rising 88% to more than $98 billion. Record advisor recruiting and strong retention support the company’s growth outlook.
• Capital Markets benefited from stronger M&A and advisory activity, producing record fiscal-year investment banking revenue above $1.1 billion. Management said the pipeline remains strong and that sponsor activity is re-engaging, although quarterly results may remain volatile.
• Bank loans reached a record $57.5 billion, led by 32% year-over-year growth in securities-based lending, while credit quality remained strong. Excess capital capacity and the planned resumption of approximately $400 million in quarterly share repurchases provide support for shareholder returns.
• Management expects fiscal 2027 non-compensation expenses to rise approximately 8% to $2.5 billion, with recruiting and technology investments continuing to pressure near-term margins. Higher-cost deposits also weighed on net interest margin, although management expects aggregate net interest income and third-party bank fees to increase about 1% sequentially next quarter.

Raymond James Financial Price Performance

RJF opened at $158.86 on Friday. The company has a market cap of $30.56 billion, a price-to-earnings ratio of 13.29, a price-to-earnings-growth ratio of 0.80 and a beta of 0.94. The company has a current ratio of 1.06, a quick ratio of 1.03 and a debt-to-equity ratio of 0.43. Raymond James Financial has a 12-month low of $138.82 and a 12-month high of $182.73. The stock has a fifty day simple moving average of $164.90 and a two-hundred day simple moving average of $160.34.

Raymond James Financial Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Thursday, October 15th. Shareholders of record on Thursday, October 1st were given a dividend of $0.54 per share. This represents a $2.16 dividend on an annualized basis and a yield of 1.4%. The ex-dividend date of this dividend was Thursday, October 1st. Raymond James Financial’s payout ratio is presently 18.83%.

Analysts Set New Price Targets

RJF has been the subject of a number of recent analyst reports. Morgan Stanley dropped their price objective on Raymond James Financial from $174.00 to $171.00 and set an “equal weight” rating for the company in a report on Friday, October 9th. Wells Fargo & Company decreased their target price on shares of Raymond James Financial from $172.00 to $169.00 and set an “equal weight” rating on the stock in a research report on Thursday. Barclays restated an “overweight” rating and set a $197.00 price target (up from $196.00) on shares of Raymond James Financial in a report on Wednesday, October 7th. TD Cowen decreased their target price on Raymond James Financial from $161.00 to $160.00 and set a “hold” rating for the company in a research note on Tuesday, September 1st. Finally, Weiss Ratings reissued a “buy (b-)” rating on shares of Raymond James Financial in a research report on Monday, August 17th. Five research analysts have rated the stock with a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of “Hold” and an average target price of $178.33.

Insider Activity

In other news, insider Bella Allaire sold 7,500 shares of Raymond James Financial stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $177.60, for a total value of $1,332,000.00. Following the completion of the sale, the insider directly owned 46,086 shares in the company, valued at $8,184,873.60. The trade was a 14.00% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Corporate insiders own 0.58% of the company’s stock.

About Raymond James Financial

Raymond James Financial, Inc is a diversified financial services company serving individuals, corporations, municipalities and institutions. Through its subsidiaries and affiliated advisors, the company provides wealth management, investment advisory, financial planning, securities brokerage, banking and capital markets services.

The company’s Private Client Group offers investment management, retirement planning, estate planning and other financial planning services through a network of financial advisors.