Overview

• U.S. financial services firm's fiscal Q3 revenue rose 16% yr/yr, beating analyst expectations

• Adjusted EPS for fiscal Q3 beat analyst expectations

• Company repurchased $400 mln of common stock during the quarter

Outlook

• Raymond James says it enters fiscal fourth qtr with significant momentum and strong business drivers

• Company cites robust financial advisor recruiting and strong investment banking pipelines for future growth

• Raymond James says it has ample capital and liquidity to support continued growth

Result Drivers

• ASSET MANAGEMENT FEES - Revenue growth was primarily driven by higher asset management and related administrative fees, mainly due to market appreciation and net inflows into fee-based accounts

• INVESTMENT BANKING - Higher M&A and advisory revenues, along with increased debt and equity underwriting, boosted Capital Markets segment revenue

• BANK LOAN GROWTH - Growth in securities-based and residential mortgage loans contributed to record net bank loans

Company press release: ID:nGNX2q0bvM

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q3 Revenue	Beat	$3.93 bln	$3.87 bln (7 Analysts)
Q3 Adjusted EPS	Beat	$3.14	$2.91 (12 Analysts)
Q3 EPS		$3.01
Q3 Adjusted Net Income	Beat	$620 mln	$573.68 mln (7 Analysts)

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 6 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for Raymond James Financial Inc is $180.00, about 7.2% above its July 21 closing price of $167.93

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

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