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% | —% | | | | | ...

Raymond James Financial, Inc. (RJF) came out with quarterly earnings of $2.93 per share, beating the Zacks Consensus Estimate of $2.75 per share. This compares to earnings of $2.40 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.55%. A quarter ago, it was expected that this company would post earnings of $2.43 per share when it actually produced earnings of $2.95, delivering a surprise of 21.40%.Over the last four quarters, ...

Raymond James Financial (RJF) Q1 2025 Earnings Call January 29, 2025 05:00 PM ET Company Participants Kristie Waugh - SVP, IRPaul Reilly - Chair and CEOButch Oorlog - CFOPaul Shoukry - PresidentDevin Ryan - Director of Financial Technology ResearchKyle Voigt - Managing Director - Equity ResearchAlex Blostein - Managing DirectorSteven Chubak - Managing Director Conference Call Participants William (Bill) katz - Senior Equity AnalystDan Fannon - Managing Director - Research AnalystBrennan Hawken - Senior Anal ...

January 29, 2025 FOR IMMEDIATE RELEASE Media Contact: Steve Hollister, 727.567.2824 Investor Contact: Kristina Waugh, 727.567.7654 raymondjames.com/news-and-media/press-releases RAYMOND JAMES FINANCIAL REPORTS FISCAL FIRST QUARTER OF 2025 RESULTS ST. PETERSBURG, Fla – Raymond James Financial, Inc. (NYSE: RJF) today reported net revenues of $3.54 billion and net income available to common shareholders of $599 million, or $2.86 per diluted share, for the fiscal first quarter ended December 31, 2024. Excluding ...