Financial services firm Raymond James Financial (NYSE: RJF) will be announcing earnings results this Wednesday after market close. Here’s what investors should know.
Raymond James missed analysts’ revenue expectations last quarter, reporting revenues of $3.74 billion, up 5.6% year on year. It was a mixed quarter for the company, with a narrow beat of analysts’ EPS estimates but a slight miss of analysts’ revenue estimates.
Is Raymond James a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Raymond James’s revenue to grow 10.8% year on year, improving from the 9.1% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. Raymond James has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Raymond James’s peers in the investment banking & brokerage segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Morgan Stanley delivered year-on-year revenue growth of 16%, beating analysts’ expectations by 4%, and Goldman Sachs reported revenues up 14.4%, topping estimates by 1%. Morgan Stanley traded up 2.1% following the results while Goldman Sachs’s stock price was unchanged.
Read our full analysis of Morgan Stanley’s results here and Goldman Sachs’s results here.
There has been positive sentiment among investors in the investment banking & brokerage segment, with share prices up 12.4% on average over the last month. Raymond James is up 2.8% during the same time and is heading into earnings with an average analyst price target of $170.83 (compared to the current share price of $149.50).
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