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Valued at a market cap of $26.4 billion, Raymond James Financial, Inc. (RJF) is a diversified financial services company that provides capital markets, asset management, banking, and other tailored services to individuals, corporations, and municipalities. The Saint Petersburg, Florida-based company is expected to announce its fiscal Q4 earnings results after the market closes on Wednesday, Oct. 23.
Ahead of this event, analysts expect the investment banking company to report a profit of $2.45 per share, up 15% from $2.13 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in two of the last four quarters while missing on other two occasions. In Q3, the company reported an EPS of $2.39, topping the consensus estimates by 3.5%.
For fiscal 2024, analysts expect RJF to report an EPS of $9.57, up 15.3% from $8.30 in fiscal 2023. Moreover, EPS is expected to grow 6.2% year-over-year to $10.16 in fiscal 2025.
Shares of RJF have gained 12.4% on a YTD basis, lagging behind both the S&P 500 Index's ($SPX) 19.4% rise and the Financial Select Sector SPDR Fund’s (XLF) 19.9% return over the same period.
Shares of RJF jumped 5.2% following its Q3 earnings release on Jul. 24 as the company reported record quarterly net revenues of $3.2 billion, which increased 11% from a year ago. This was driven by robust revenue growth across all its segments, with record net revenues earned in private client group and asset management segments, primarily fueled by higher asset management and related administrative fees. Its adjusted net income grew 27% year-over-year to $508 million or $2.39 per share due to significant revenue, client assets, and bank loans. The company’s repurchase of two million shares during the quarter further enhanced investor confidence.
Analysts' consensus view on Raymond James Financial’s stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 14 analysts covering the stock, five recommend "Strong Buy," and nine suggest "Hold." This configuration is slightly more bullish than three months ago, with four analysts suggesting a "Strong Buy."
The average analyst price target for RJF is $130.67, indicating a 4.2% potential upside from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
