Raymond James Financial Earnings: Here’s Why Investors are Ambivalent Now

Raymond James Financial Inc. (NYSE:RJF) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

Raymond James Financial Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 1.56% to $0.65 in the quarter versus EPS of $0.64 in the year-earlier quarter.

Revenue: Decreased 0.56% to $1.11 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Raymond James Financial Inc. reported adjusted EPS income of $0.65 per share. By that measure, the company missed the mean analyst estimate of $0.66. It missed the average revenue estimate of $1.11 billion.

Quoting Management: “It was an extremely difficult quarter for fixed income as upward trending volatility in long-term interest rates led to low commission volumes and a net trading loss,” Chief Executive Paul Reilly said in a statement.

Key Stats (on next page)…

Revenue decreased 5.2% from $1.17 billion in the previous quarter. EPS decreased 4.41% from $0.68 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.8 to a profit $0.73. For the current year, the average estimate has moved down from a profit of $3 to a profit of $2.73 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)