Raymond James misses Q1 revenue, adj EPS analyst expectations, increases dividend by 8%

Overview

• Diversified financial services firm's fiscal Q1 revenue missed analyst expectations

• Adjusted EPS for fiscal Q1 missed analyst expectations

• Company announced acquisition of Clark Capital and increased quarterly dividend by 8%

Outlook

• Company did not provide specific guidance for the current quarter or full year in its press release

Result Drivers

• ASSET MANAGEMENT GROWTH - Record net revenues driven by a 15% increase in asset management and related administrative fees, attributed to market appreciation and net inflows

• PRIVATE CLIENT GROUP ASSETS - Record assets under administration and fee-based accounts, with net new assets contributing to 8% annualized growth

• CAPITAL MARKETS DECLINE - Decrease in revenues due to lower M&A and advisory revenues, with a strong pipeline remaining

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment banking & brokerage services peer group is "buy."

• Wall Street's median 12-month price target for Raymond James Financial Inc is $187.00, about 10.6% above its January 27 closing price of $169.02

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nGNX5MPfz9

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