Core Insights - Raymond James has launched its proprietary AI Search technology, which utilizes generative artificial intelligence to enhance service excellence for financial advisors and associates [1] - The firm is committed to investing in innovation that improves service levels and saves time for advisors by providing a streamlined question and answer experience [2] - The strategic framework for AI innovation at Raymond James is built on three pillars: data-driven insights, enhanced service models, and secure applications [3] Technology and Investment - AI Search is designed to reduce the time advisors spend searching for information by integrating into existing knowledge centers, thus avoiding the need for new system adoption [2] - The firm invests $975 million annually in technology improvements to support the advisor-client relationship [5] - AI Search includes a real-time voting system to gather feedback on the quality of its results, ensuring reliability [3] Development and Implementation - The development of AI Search includes human checkpoints to minimize errors and maintain transparency and flexibility [4] - The technology is developed in close collaboration with financial advisors to ensure it meets their needs [5] Company Overview - Raymond James Financial, Inc. is a diversified financial services company with total client assets of $1.58 trillion [6]

Company Overview - Raymond James Financial, Inc. (RJF) shares increased by 9.2% to close at $136.28, following a period of 10.6% loss over the past four weeks, indicating a significant recovery in stock performance [1][2] - The stock's rally was supported by strong trading volume, with more shares exchanged than usual, reflecting heightened investor interest [1] Market Context - The surge in RJF shares was attributed to broader market strength, particularly after President Donald Trump's announcement of a 90-day suspension on tariffs for non-retaliating countries, which alleviated trade tensions and improved market sentiment [2] Earnings Expectations - RJF is projected to report quarterly earnings of $2.48 per share, representing a year-over-year increase of 7.4%, with expected revenues of $3.45 billion, up 10.6% from the previous year [3] - However, the consensus EPS estimate for the quarter has been revised 4% lower in the last 30 days, which may indicate potential challenges in sustaining stock price appreciation [4] Industry Comparison - RJF operates within the Zacks Financial - Investment Bank industry, where another company, Robinhood Markets, Inc. (HOOD), saw a significant increase of 23.5% in its stock price, closing at $42.21, despite a -6% return over the past month [4] - Robinhood's consensus EPS estimate for its upcoming report has changed by -0.6% to $0.35, reflecting a substantial year-over-year increase of 94.4% [5]

Core Insights - Raymond James is enhancing its leadership team to strengthen its platform for financial advisors, appointing Doug Brigman as president of Asset Management Services and Michelle Lynch as senior vice president of Practice Management and Growth Consulting [1][6]. Group 1: Leadership Appointments - Doug Brigman will assume the role of president of Asset Management Services effective October 1, 2025, succeeding Erik Fruland, who is retiring after over 34 years with the firm [2]. - Brigman has been with Raymond James since 2008 and has held various leadership positions, including chief administrative officer and president of Raymond James Insurance Group [3]. - Michelle Lynch will take on the newly created role of senior vice president, Practice Management and Growth Consulting, effective May 5, 2025, focusing on supporting financial advisors throughout their business lifecycle [6]. Group 2: Strategic Focus - The firm aims to provide a premier platform for financial advisors, emphasizing fee-based investment solutions, consultation, and service excellence [2][4]. - Brigman expressed a commitment to enhancing collaboration among internal business units to support the growth of the advisory platform [5]. - Lynch highlighted the importance of helping advisors build and grow their businesses according to their unique needs and those of their clients [7]. Group 3: Company Overview - Raymond James Financial, Inc. is a diversified financial services company with total client assets amounting to $1.58 trillion [10].

Core Viewpoint - Raymond James Financial, Inc. reported strong first-quarter fiscal 2025 earnings, surpassing estimates, but shares have underperformed the S&P 500 in the past month, raising questions about future performance [1][2]. Financial Performance - Adjusted earnings for Q1 fiscal 2025 were $2.93 per share, exceeding the Zacks Consensus Estimate of $2.75, and reflecting a 22% increase from the prior-year quarter [2][3]. - Net income available to common shareholders was $599 million, or $2.86 per share, up from $497 million, or $2.32 per share, in the prior-year quarter [3]. - Quarterly net revenues reached $3.54 billion, a 17% year-over-year increase, surpassing the Zacks Consensus Estimate of $3.48 billion [4]. Segment Performance - The Capital Markets segment saw a 42% increase in revenues, while the Private Client Group and Asset Management segments reported growths of 14% and 25%, respectively [4]. - The Bank segment experienced a 4% decline in revenues, and the "Others" category saw a significant 54% drop [4]. Expense Analysis - Non-interest expenses rose 17% year-over-year to $2.79 billion, primarily due to increased compensation, commissions, and investment sub-advisory fees [5]. - No bank loan provision for credit losses was recorded in the reported quarter, contrasting with $12 million in the prior-year quarter [5]. Asset Management - As of December 31, 2024, client assets under administration totaled $1.56 trillion, a 14% increase from the prior-year quarter, while financial assets under management grew 13% to $243.9 billion [6]. Balance Sheet Strength - Total assets were $82.28 billion, down 1% from the prior quarter, while total equity increased by 2% to $11.84 billion [7]. - Book value per share rose to $57.89 from $51.32 a year ago, and the total capital ratio improved to 25% from 23% [7]. Return on Equity - The annualized return on common equity was 20.4%, up from 19.1% a year ago [8]. Share Repurchase Activity - In the reported quarter, the company repurchased 0.3 million shares for $50 million [9]. Future Outlook - For fiscal 2025, management anticipates non-compensation expenses to be approximately $2.1 billion, reflecting about 10% growth from the previous year [11]. - Management expects a sequential decline of 2-3% in aggregate net interest income and related fees due to two fewer billing days in the second quarter [12]. - The effective tax rate for fiscal 2025 is estimated to be around 24% to 25% [12]. Estimate Trends - There has been an upward trend in estimates revisions over the past month, indicating positive sentiment among investors [13][15]. VGM Scores - Raymond James Financial holds an average Growth Score of C, a Momentum Score of F, and a Value Score of B, resulting in an aggregate VGM Score of C [14].

Core Viewpoint - Raymond James Financial, Inc. (RJF) is experiencing significant selling pressure, with a recent decline of 11.1% over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, supported by analyst expectations of better-than-previously predicted earnings [1] Group 1: Technical Indicators - The Relative Strength Index (RSI) is utilized to identify oversold stocks, with a reading below 30 indicating that a stock may be oversold [2] - RJF's current RSI reading is 29, suggesting that the heavy selling pressure may be exhausting, indicating a potential reversal in trend [5] Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that RJF's earnings estimates for the current year have increased by 1.4% over the last 30 days, which typically correlates with price appreciation [6] - RJF holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [7]

Group 1 - Raymond James Financial, Inc. (RJF) has experienced a 12% decline in stock price over the past four weeks, but is now in oversold territory, indicating potential for a trend reversal [1] - The Relative Strength Index (RSI) for RJF is currently at 27.08, suggesting that the heavy selling pressure may be exhausting, which could lead to a price rebound [5] - There is strong consensus among Wall Street analysts that RJF will report better earnings than previously predicted, with a 1.4% increase in consensus EPS estimates over the last 30 days [6] Group 2 - RJF holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [7]

Assets and Liabilities - Total trading assets amounted to $1,459 million as of December 31, 2024, with a significant portion in debt securities totaling $1,418 million[26]. - Available-for-sale securities reached $7,727 million, primarily consisting of agency MBS, agency CMOs, and U.S. Treasuries[29]. - Total assets at fair value on a recurring basis were $9,715 million, with Level 1 assets at $1,046 million and Level 2 assets at $8,857 million[26]. - Total liabilities at fair value on a recurring basis were $1,304 million, with trading liabilities accounting for $835 million[26]. - The company reported a total of $10,278 million in assets at fair value on a recurring basis as of September 30, 2024[28]. - The fair value of Level 3 trading assets decreased to $2 million, while Level 3 derivative liabilities were recorded at $2 million[32]. - The total estimated fair value of bank loans, net, was $46,065 million as of December 31, 2024, compared to $45,185 million on September 30, 2024[43]. - The total available-for-sale securities fair value decreased from $8,260 million on September 30, 2024, to $7,727 million on December 31, 2024[46]. - The total amount of collateral received under reverse repurchase agreements was $3,770 million as of December 31, 2024, slightly down from $3,800 million on September 30, 2024[74]. - The total amount of collateral pledged with the FHLB or FRB was $17,493 million as of December 31, 2024, compared to $15,773 million on September 30, 2024[77]. Financial Performance - Total revenues for the three months ended December 31, 2024, were $4,035 million, an increase from $3,520 million in the same period of 2023, representing a growth of approximately 14.6%[181]. - Non-interest revenues for the same period were $3,008 million, compared to $2,467 million in 2023, reflecting a year-over-year increase of about 21.9%[181]. - Asset management and related administrative fees reached $1,743 million in Q4 2024, up from $1,407 million in Q4 2023, marking a growth of approximately 23.8%[181]. - Total brokerage revenues increased to $559 million in Q4 2024 from $522 million in Q4 2023, showing a rise of about 7.1%[181]. - Investment banking revenues totaled $325 million in Q4 2024, compared to $181 million in Q4 2023, indicating a significant increase of approximately 79.0%[181]. - Interest income for the three months ended December 31, 2024, was $1,027 million, slightly down from $1,053 million in the same period of 2023[185]. - Net interest income after bank loan provision for credit losses was $529 million for Q4 2024, compared to $534 million in Q4 2023[185]. - The company reported a net change in accumulated other comprehensive income (AOCI) as of December 31, 2024, totaling $(655) million[174]. - The company’s total dividends paid for the three months ended December 31, 2024, were $1 million, consistent with the previous year[166]. Loans and Credit Quality - Total loans held for investment increased to $47,424 million as of December 31, 2024, up from $46,267 million on September 30, 2024[82]. - The allowance for credit losses (ACL) as a percentage of total loans held for investment was 0.95% as of December 31, 2024, compared to 0.99% on September 30, 2024[82]. - The total past due loans (30-89 days and more) were $7 million as of December 31, 2024, with nonaccrual loans totaling $131 million[88]. - The credit quality of the bank loan portfolio includes loans classified as "criticized," which are under close management attention due to potential weaknesses[99]. - The company reported $72 million of nonaccrual loans that were current as of December 31, 2024[88]. - The total amount of residential mortgage loans held for investment was $9,602 million as of December 31, 2024[88]. - The company has maintained a consistent credit quality with no significant changes in the allowance for credit losses across different loan segments[106]. - The provision for credit losses for the three months ended December 31, 2024 reflected an improved macroeconomic forecast and loan repayments, offset by provisions on new loans and charge-offs of certain loans[107]. Shareholder Information - The balance of common shares outstanding as of December 31, 2024, was 204.6 million, a decrease from 208.7 million in the same period of 2023[168]. - During the three months ended December 31, 2024, the company repurchased 310 thousand shares of common stock for $50 million at an average price of $161.13 per share[169]. - Dividends per common share declared increased to $0.50 in 2024 from $0.45 in 2023, while dividends paid rose to $0.45 from $0.42[171]. - The dividend payout ratio for the three months ended December 31, 2024, was 17.5%, down from 19.4% in 2023[172]. - As of December 31, 2024, $1.45 billion remained available under the Board of Directors' common stock repurchase authorization[169]. Regulatory and Legal Matters - The company continues to face significant litigation and regulatory scrutiny, with no assurance that material losses will not be incurred from unasserted claims[161]. - As of December 31, 2024, the estimated upper end of the range of reasonably possible aggregate loss for legal and regulatory matters is approximately $30 million[163]. Capital and Liquidity - RJF's Tier 1 capital ratio was 23.7%, exceeding the required 8.5%[194]. - RJF's total capital ratio stood at 25.0%, well above the required 10.5%[194]. - For Raymond James Bank, the Tier 1 leverage ratio was 8.2%, above the required 4.0%[198]. - The company emphasizes the importance of forward-looking statements regarding future strategic objectives and financial results[221]. - The management discusses anticipated savings and financial results, including expenses and earnings, as part of their strategic outlook[221]. - The management's discussion includes a focus on liquidity and capital resources, indicating ongoing financial health[219].

Core Viewpoint - Raymond James (RJF) reported better-than-expected first-quarter fiscal 2025 results, with adjusted earnings of $2.93 per share, exceeding the Zacks Consensus Estimate of $2.75, and a 22% increase from the prior-year quarter [1][2] Financial Performance - Net income available to common shareholders was $599 million or $2.86 per share, up from $497 million or $2.32 per share in the prior-year quarter [3] - Quarterly net revenues reached $3.54 billion, a 17% year-over-year increase, surpassing the Zacks Consensus Estimate of $3.48 billion [4] - Segment-wise performance included a 14% growth in the Private Client Group, a 25% increase in Asset Management, and a 42% jump in Capital Markets, while the Bank segment fell by 4% and Others saw a 54% decline [4] Expense Analysis - Non-interest expenses rose 17% year-over-year to $2.79 billion, primarily due to increased compensation, commissions, benefits costs, and investment sub-advisory fees [5] - No bank loan provision for credit losses was recorded in the reported quarter, compared to $12 million in the prior-year quarter [5] Asset Management - As of December 31, 2024, client assets under administration were $1.56 trillion, a 14% increase from the prior-year quarter, while financial assets under management grew 13% to $243.9 billion [6] Balance Sheet Strength - Total assets were $82.28 billion, down 1% from the prior quarter, while total equity rose 2% to $11.84 billion [7] - Book value per share increased to $57.89 from $51.32 as of December 31, 2023 [7] - The total capital ratio improved to 25% from 23% a year ago, and the Tier 1 capital ratio rose to 23.7% from 21.6% [7] Return on Equity - Return on common equity (annualized) was 20.4%, up from 19.1% a year ago [8] Share Repurchase Program - In the reported quarter, RJF repurchased 0.3 million shares for $50 million and announced a new share repurchase program authorizing $1.5 billion, replacing the previous plan [9] Strategic Outlook - The company's global diversification efforts, strategic acquisitions, and relatively high rates are expected to support top-line growth, although elevated operating expenses and the volatile nature of capital markets present concerns [11]

Core Insights - Raymond James Financial, Inc. (RJF) reported a revenue of $3.54 billion for the quarter ended December 2024, reflecting a 17.4% increase year-over-year and surpassing the Zacks Consensus Estimate of $3.48 billion by 1.76% [1] - The company's earnings per share (EPS) was $2.93, up from $2.40 in the same quarter last year, exceeding the consensus EPS estimate of $2.75 by 6.55% [1] Financial Performance Metrics - Private Client Group Asset Under Management was reported at $1.49 billion, slightly below the estimated $1.54 billion [4] - The Tier 1 Leverage Ratio stood at 13%, exceeding the average estimate of 12.9% [4] - Private Client Group assets in Fee-based Accounts totaled $876.60 million, lower than the average estimate of $898.47 million [4] - Total Capital Ratio was reported at 25%, above the average estimate of 24.2% [4] - Total brokerage revenues reached $559 million, a 7.1% increase year-over-year, but below the estimated $585.12 million [4] - Interest income was $1.03 billion, slightly below the estimated $1.04 billion, representing a year-over-year decline of 2.5% [4] - Other revenues were reported at $39 million, exceeding the average estimate of $37.51 million, with a year-over-year increase of 2.6% [4] - Investment banking revenues surged to $325 million, significantly above the estimated $256.14 million, marking a year-over-year increase of 79.6% [4] - Account and service fees generated $342 million, surpassing the estimated $330.39 million, with a year-over-year increase of 7.2% [4] - Asset management and related administrative fees were reported at $1.74 billion, slightly above the estimated $1.73 billion, reflecting a 23.9% year-over-year increase [4] - Brokerage revenues from Securities Commissions and Fees totaled $440 million, close to the estimated $442.81 million, with a year-over-year increase of 14.9% [4] - Net interest income was reported at $414 million, below the average estimate of $522.26 million, representing a year-over-year decline of 2.8% [4] Stock Performance - Shares of Raymond James Financial have returned +10.4% over the past month, outperforming the Zacks S&P 500 composite's +1.7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Fiscal 1Q25 Results January 29, 2025 Forward-looking statements Overview of Results Paul Reilly Chair & CEO, Raymond James Financial 3 Fiscal 1Q25 highlights | | | | | vs. | vs. | | --- | --- | --- | --- | --- | --- | | $ in millions, except per share amounts | | | 1Q25 | 1Q24 | 4Q24 | | As reported: | | | | | | | Net revenues | RECORD | $ | 3,537 | 17% | 2% | | Net income available to common shareholders | | $ | 599 | 21% | —% | | Earnings per common share — diluted | RECORD | $ | 2.86 | 23% | —% | | | | | ...