Financial services firm Raymond James Financial (NYSE:RJF) will be reporting earnings this Wednesday after market close. Here’s what to look for.
Raymond James beat analysts’ revenue expectations by 2.7% last quarter, reporting revenues of $3.73 billion, up 7.7% year on year. It was a very strong quarter for the company, with a beat of analysts’ EPS and 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, analysts are expecting Raymond James’s revenue to grow 6.5% year on year to $3.77 billion, slowing from the 17.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.83 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Raymond James has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Raymond James’s peers in the investment banking & brokerage segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Jefferies delivered year-on-year revenue growth of 5.7%, beating analysts’ expectations by 3%, and Goldman Sachs reported a revenue decline of 3%, topping estimates by 0.5%. Jefferies traded down 5.6% following the results while Goldman Sachs was up 3.1%.
Read our full analysis of Jefferies’s results here and Goldman Sachs’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 up 3.4% during the same time and is heading into earnings with an average analyst price target of $182.82 (compared to the current share price of $169.79).
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