Raymond James Financial (RJF) Up 11.1% Since Last Earnings Report: Can It Continue?

Core Viewpoint - Raymond James Financial, Inc. has shown strong performance in its recent earnings report, with adjusted earnings significantly surpassing estimates and a positive trend in share price, outperforming the S&P 500 [1][2][15]. Financial Performance - For Q4 fiscal 2024, adjusted earnings were $2.95 per share, exceeding the Zacks Consensus Estimate of $2.44, and reflecting a 38% increase from the prior-year quarter [2][3]. - The net income available to common shareholders on a GAAP basis was $601 million or $2.86 per share, up from $432 million or $2.02 per share in the prior-year quarter [3]. - For fiscal 2024, adjusted earnings reached $10.05, beating the consensus estimate of $9.55, and grew 21% year over year [4]. Revenue and Expenses - Quarterly net revenues were $3.46 billion, a 13% increase year over year, surpassing the Zacks Consensus Estimate of $3.3 billion [5]. - For fiscal 2024, net revenues grew 10% year over year to $12.82 billion, exceeding the consensus estimate of $12.67 billion [5]. - Non-interest expenses rose 9% from the prior-year quarter to $2.7 billion, primarily due to higher compensation and investment sub-advisory fees [7]. Segment Performance - The Private Client Group saw a 9% growth in net revenues, Asset Management's net revenues increased by 17%, and Capital Markets' top line surged by 42% [6]. - The Bank segment experienced a decline of 4% in net revenues compared to the prior year [6]. Client Assets and Balance Sheet - As of September 30, 2024, client assets under administration reached $1.57 trillion, a 25% increase from the prior-year quarter [8]. - Total assets were $83 billion, up 3% from the prior quarter, and total equity rose 4% to $11.59 billion [9]. Capital Ratios and Share Repurchases - The book value per share increased to $57.03 from $48.54 a year ago, with a total capital ratio of 24.1% compared to 22.8% a year prior [10]. - In the reported quarter, the company repurchased 2.6 million shares for $300 million [11]. Market Outlook - Estimates for Raymond James Financial have trended upward, with a consensus estimate shift of 6.95% [12][13]. - The company holds a Zacks Rank 1 (Strong Buy), indicating expectations for above-average returns in the coming months [15].