Financial services firm Raymond James Financial (NYSE: RJF) will be reporting earnings this Wednesday afternoon. Here’s what to expect.
Raymond James beat analysts’ revenue expectations last quarter, reporting revenues of $3.93 billion, up 15.6% year on year. It was a strong quarter for the company, with a solid beat of analysts’ AUM estimates and a beat of analysts’ EPS 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 12.9% year on year, improving from the 7.7% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. 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 Q3 results, giving us a hint as to what we can expect. Goldman Sachs delivered year-on-year revenue growth of 23%, beating analysts’ expectations by 11.5%, and Jefferies reported revenues up 8.5%, topping estimates by 1.1%. Goldman Sachs traded down 1.7% following the results while Jefferies was also down 1.3%.
Read our full analysis of Goldman Sachs’s results here and Jefferies’s results here.
Investors in the investment banking & brokerage segment have had steady hands going into earnings, with share prices flat over the last month. Raymond James is down 1.9% during the same time and is heading into earnings with an average analyst price target of $183.86 (compared to the current share price of $158.09).
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