Wall Street expects a year-over-year increase in earnings on higher revenues when Raymond James Financial, Inc. (RJF) reports results for the quarter ended September 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on October 23, 2024, might help the stock move higher if these key numbe ...

Raymond James Financial Inc. (RJF) remains well-positioned for growth on the back of opportunistic acquisitions, favorable segment performance and a solid balance sheet. However, increasing reliance on capital markets for top-line growth and high expenses are headwinds. RJF's Growth Drivers Strategic Acquisitions: Raymond James has been engaged in opportunistic buyouts over the years, which led to its expansions in Europe and Canada. In fiscal 2023, the company acquired Canada-based Solus Trust Company Limi ...

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Core Viewpoint - Micron Technology's stock is experiencing a significant decline, attributed to two major price-target cuts from analysts, with shares down approximately 43% from earlier highs this year [1][2][3] Analyst Ratings and Price Targets - Raymond James maintained an outperform rating but reduced its one-year price target from $160 to $125, citing lower sales volume growth in non-HBM DRAM and NAND markets as a reason for the cut [2] - Exane BNP Paribas downgraded its rating from outperform to underperform and slashed its price target from $140 to $67, expressing concerns that HBM supply will diminish pricing power for DRAM solutions [3] Market Outlook and Investor Sentiment - The stock had previously surged in early 2024 due to expectations of sustained growth from artificial intelligence trends, but investor confidence is wavering regarding the strength of these tailwinds [4] - Raymond James analysts believe the long-term growth outlook for HBM solutions justifies a higher valuation for Micron, while BNP Paribas forecasts earnings targets for 2025 and 2026 that are 34% and 45% below average analyst estimates, respectively [5] Industry Challenges - The contrasting views from Raymond James and BNP Paribas highlight the challenges in forecasting the memory chip market, with bullish investors hoping for strong growth driven by AI technologies, while concerns about product cannibalization and performance expectations persist [6]

It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Luckily, Zacks Premium offers several different ways to do both. The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor. Zacks Premium also includes the Zacks Style Score ...

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both. The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens. Zacks Premium also includes the Zacks Style Scores. What are the Zacks Style Scores? The Zacks St ...

momunicanana jetcityimage A Diversified Financial Firm Currently On A Dip One financial-sector stock has been on my watchlist for over a year now and since it has recently taken a price dip despite being profitable and having positive future EPS estimates, today's article takes another look at it more closely. VAL Raymond James Financial Inc (RJF) Price 115.20 117.26 Raymond James Financial Inc (RJF) 200-Day Simple Movie 120.00 117.26 115.20 108.00 96,00 84.00 Oct *23 Apr '24 Jan '24 Jul '24 Seeking AlphaQ ...

Charles Schwab's Challenges - Charles Schwab's shares fell nearly 9% to $68 57 following a disappointing quarterly report, driven by lower-than-expected bank deposits, net interest revenue, and new brokerage accounts [5] - The company is facing challenges from rising interest rates, deposit outflows, and the integration of TD Ameritrade accounts, resulting in $14 4 billion in unrealized losses [2][13] - Schwab plans to shrink its bank operations and rely more on third-party banks to manage capital and funding risks, signaling a significant shift in its business model [5][7] Raymond James' Strengths - Raymond James' shares have risen ~18% over the last 9 months, supported by strong balance sheet management and low exposure to high-volatility commercial real estate [3][7] - The company reported a 18 19% return on equity (ROE), outperforming Charles Schwab's 14 40% ROE, and trades at a more attractive forward multiple [8][29] - Raymond James' assets under management (AUM) increased, with private client assets and fee-based accounts growing to $821 billion and financial assets under management reaching $229 billion [27][28] Financial Sector Pressures - The financial sector faces challenges from rising interest rates and deteriorating loan quality, with many banks increasing reserves to cover potential losses on commercial office loans [12] - Charles Schwab's reliance on expensive funding sources to address deposit outflows and operational shortfalls has impacted its performance [13] - Raymond James, however, has demonstrated resilience, with a 11% YoY revenue growth rate and a strong capital markets division poised for recovery [15][17] Raymond James' Strategic Positioning - Raymond James' forward PEG ratio of 0 80 is significantly below the sector median of 1 27, indicating potential undervaluation and upside potential [29] - The company's capital markets division, despite a pre-tax loss of $14 million, saw a 20% YoY growth in net revenues, driven by higher debt and equity underwriting revenues [18][34] - CEO Paul Reilly emphasized the company's strong M&A pipeline and expectations for a gradual recovery in capital markets activity [35] Market Share and Growth - Raymond James is gaining market share, with domestic net new assets of $16 5 billion in the quarter, representing a 5 2% annualized growth rate [27] - The company's diversified revenue streams and conservative investment strategy position it well for continued growth, even in volatile market conditions [32] - Charles Schwab, in contrast, is losing market share to competitors like Robinhood, impacting its ability to attract new brokerage accounts [13]

Financial Data and Key Metrics Changes - The bank segment generated net revenues of $418 million and pre-tax income of $115 million, with a net interest margin of 2.64%, declining just two basis points compared to the preceding quarter [2] - Record net revenues of $9.36 billion and record net income available to common shareholders of $1.46 billion were achieved, up 9% and 12% respectively over the previous record set in the prior year [2] - Consolidated net revenues were a record $3.23 billion in the third quarter, up 11% over the prior year and up 4% sequentially [5] - Annualized return on common equity was 18.2% and annualized adjusted return on tangible common equity was 22.5% for the nine-month period [3] Business Line Data and Key Metrics Changes - Asset management and related administrative fees grew to $1.61 billion, representing 17% growth over the prior year and 6% over the preceding quarter [5] - Investment banking revenues of $183 million increased 21% year-over-year and 2% sequentially, primarily benefiting from stronger debt and equity underwriting revenues [7] - Brokerage revenues of $532 million grew 15% year-over-year, mostly due to higher brokerage revenues in the Private Client Group (PCG) [6] Market Data and Key Metrics Changes - Domestic net new assets during the quarter were $16.5 billion, representing a 5.2% annualized growth rate on the beginning of the period domestic PCG assets [91] - Total client assets under administration increased 2% sequentially to $1.48 trillion, with private client assets and fee-based accounts growing to $821 billion [90] - Domestic cash sweep and enhanced savings program balances ended the quarter at $56.4 billion, down 3% from the previous quarter [95] Company Strategy and Development Direction - The company remains focused on fortifying the balance sheet with diverse funding sources and prudently growing assets to support client demand [28] - The firm plans to increase the pace of buybacks while continuing to look for M&A opportunities that meet disciplined parameters [29] - The company is optimistic about the prospects for growth in securities-based loans and believes investments in capital markets will position it well for future growth [26][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong results and positioning for long-term growth despite economic uncertainty [22] - The firm anticipates a gradual recovery in M&A activity influenced by market conditions, expecting activity to pick up over the next few quarters [24] - Management noted that while corporate growth has been muted, they are well-positioned to lend once activity increases within conservative risk parameters [29] Other Important Information - Compensation expense was $2.09 billion, with a total compensation ratio of 64.7% for the quarter [11] - The bank loan allowance for credit losses on corporate loans as a percentage of corporate loans held for investment was 2% at the quarter end [19] - The firm repurchased 2 million shares of common stock for $243 million at an average price of $122 per share [17] Q&A Session Summary Question: How would you characterize the current changes in the competitive environment? - Management indicated they are monitoring competitive changes closely and are prepared to adjust rates if necessary, but currently have no plans to change [32][39] Question: What is the trajectory for operating leverage in the business? - Management believes that as they grow assets, they can achieve operating leverage, supported by technology investments [40][41] Question: What percentage of fee-based accounts is in cash at the lowest rates? - Approximately 2.5% of advisory sweep assets are in cash, which is considered frictional cash [46][47] Question: Can you discuss the loan growth and securities-based loan demand? - Management is cautiously optimistic about continued growth in securities-based loans as clients become more comfortable with current rates [54][55] Question: How do you view the competitive backdrop for cash sweep rates? - Management stated they are digesting recent competitive moves but do not anticipate immediate changes to their rates [69][70]

Raymond James Financial, Inc. (RJF) came out with quarterly earnings of $2.39 per share, beating the Zacks Consensus Estimate of $2.31 per share. This compares to earnings of $1.85 per share a year ago. These figures are adjusted for non-recurring items. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Over the last four quarters, the company has surpassed con ...