Raymond James Q3 profit beats estimates on higher asset management fees
RJF•Result drivers
- Asset management fees - Revenue growth was primarily driven by higher asset management and related administrative fees, mainly due to market appreciation and net inflows into fee-based accounts.
- Investment banking - Higher M&A and advisory revenues, along with increased debt and equity underwriting, boosted Capital Markets segment revenue.
- Bank loan growth - Growth in securities-based and residential mortgage loans contributed to record net bank loans.
Key details and analyst coverage
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| Q3 Revenue | Beat | $3.93 bln | $3.87 bln (7 Analysts) |
| Q3 Adjusted EPS | Beat | $3.14 | $2.91 (12 Analysts) |
| Q3 EPS | $3.01 | ||
| Q3 Adjusted Net Income | Beat | $620 mln | $573.68 mln (7 Analysts) |
- The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"
- The average consensus recommendation for the banks peer group is "buy"
- Wall Street's median 12-month price target for Raymond James Financial Inc is $180.00, about 7.2% above its July 21 closing price of $167.93
- The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago
