Latest news with #RJF
Yahoo
22-05-2025
- Business
- Yahoo
Raymond James Financial (NYSE:RJF) Declares Dividends on Preferred and Common Shares
Raymond James Financial announced a quarterly cash dividend of $0.50 per share on common stock, set for July, which potentially bolstered investor sentiment, contributing to a 13% increase in share price over the last month. Alongside, the company's solid second-quarter earnings report indicating improved revenue and net income over the previous year further supported the upward trajectory. This investor confidence in RJF was seen despite broader market fluctuations influenced by federal deficit concerns and fluctuating bond yields. While the Dow Jones showed a slight rebound, RJF's strategies and financial performance may have provided additional support for the positive price movement. Buy, Hold or Sell Raymond James Financial? View our complete analysis and fair value estimate and you decide. We've found 17 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. The recent announcement of a US$0.50 quarterly dividend from Raymond James Financial potentially uplifted investor sentiment, aligning with the company's advantageous short-term share price increase. Over a five-year timeframe ending in May 2025, RJF shares delivered a total return of 229.14%, reflecting long-term resilience and growth. This return includes both share price appreciation and dividend payouts, suggesting a robust investment over that period. Comparatively, the 23.3% earnings growth over the past year surpassed the Capital Markets industry average of 17.8%, highlighting RJF's competitive position. The company's strategic recruitment of high-net-worth advisors and investment in AI are anticipated to enhance future revenue and efficiency. With analysts forecasting a revenue growth rate of 5.5% annually and a projected earnings expansion to US$2.5 billion by 2028, these initiatives could support long-term growth despite uncertainties from market volatility and tech investment risks. However, interest rate and economic fluctuations present potential challenges to achieving these targets. As of today's date, RJF's current share price of US$141.12 sits close to the consensus price target of US$152.50, reflecting a modest 7.5% upside potential, indicative of the market's perception that the company is relatively fairly valued at present. The slight discount to price target underscores the importance of these growth forecasts being realized to justify the anticipated valuations. Investors should consider these forecasts and their assumptions against personal insights when evaluating RJF's future prospects. Navigate through the intricacies of Raymond James Financial with our comprehensive balance sheet health report here. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:RJF. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
24-04-2025
- Business
- Yahoo
Raymond James Financial Inc (RJF) Q2 2025 Earnings Call Highlights: Strong Revenue Growth and ...
Net Revenues: $3.4 billion for the fiscal second quarter, up 9% year-over-year. Pre-Tax Income: $671 million, a 10% increase over the year-ago quarter. Net Income Available to Common Shareholders: $493 million. Earnings Per Diluted Share: $2.36; adjusted earnings per diluted share of $2.42. Pre-Tax Margin: 19.7%; adjusted pre-tax margin of 20.3%. Return on Common Equity: 16.4%; adjusted return on tangible common equity of 19.7%. Client Assets Under Administration: $1.54 trillion, a 6% year-over-year growth. Net New Assets: $8.8 billion, representing a 2.6% annualized growth rate. Loans: Ended the quarter at a record $48.3 billion. Share Repurchases: $250 million during the quarter at an average share price of $146; additional $190 million in April at $125 per share. Private Client Group Revenues: $2.49 billion, driven by 6% higher assets under administration. Capital Markets Revenues: $396 million, with a 23% year-over-year growth. Asset Management Revenues: $289 million, with strong net inflows of $3.7 billion. Bank Segment Revenues: $434 million, with a net interest margin of 2.67%. Compensation Expense: $2.2 billion, with a total compensation ratio of 64.8%. Non-Compensation Expenses: $528 million, a 2% sequential increase. Effective Tax Rate: 26.2% for the quarter. Warning! GuruFocus has detected 2 Warning Sign with RJF. Release Date: April 23, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Raymond James Financial Inc (NYSE:RJF) reported strong financial results with quarterly net revenues of $3.4 billion and pre-tax income of $671 million, reflecting year-over-year growth of 9% and 10%, respectively. The Private Client Group ended the quarter with $1.54 trillion of client assets under administration, representing a year-over-year growth of 6%. The firm achieved record net revenues of $6.9 billion and record pre-tax income of $1.4 billion for the first six months of fiscal 2025, up 13% and 15% over the first half of fiscal 2024. Raymond James Financial Inc (NYSE:RJF) was ranked number one in the 2025 J.D. Power Survey for Advised Investor Satisfaction and Industry Trust. The company has resumed share repurchases, buying back $250 million of common stock during the quarter and an additional $190 million in April, reflecting confidence in its long-term returns. The investment banking segment faced challenges due to market uncertainty and heightened volatility, impacting the timing of closings. Net new assets (NNA) were lower this quarter, similar to the same quarter in fiscal 2024, although there was improvement throughout the quarter. The fixed income market at the start of the third quarter is challenging, with market and interest rate uncertainty posing significant headwinds. The bank segment's net interest income grew only 1% sequentially, with a 7-basis point expansion of net interest margin to 2.67%, indicating modest growth. The company is no longer pursuing certain M&A opportunities due to valuation concerns, which may impact future growth prospects. Q: Can you elaborate on the improvements in Net New Assets (NNA) during the quarter and the pipeline's current status compared to last year? A: Paul Shoukry, President and CFO, explained that NNA improved throughout the quarter, particularly in March and April, with strong new commitments. The pipeline is robust across various firms and affiliation options, driven by Raymond James' advisor and client-focused culture, strong balance sheet, and stability, which are attractive to advisors seeking growth and stability. Q: What are you seeing in terms of loan demand, especially given the current market volatility? A: Butch Oorlog, CFO, noted that corporate loan demand has been tepid due to volatility, but there is significant demand for securities-based loans (SBL), which grew by over $600 million during the quarter. April has also shown strong SBL loan growth, driven by clients' liquidity needs around tax payments. Q: How is the recruiting landscape affected by recent M&A activity and market volatility? A: Paul Shoukry stated that recruiting momentum remains strong, independent of M&A activity. However, M&A can catalyze advisors to explore other options, and Raymond James' culture and capabilities make it an attractive choice. Market volatility has historically driven advisors to seek firms with strong balance sheets, benefiting Raymond James. Q: Can you provide more details on the capital return strategy and the target tier 1 leverage ratio? A: Paul Shoukry confirmed that the 10% tier 1 leverage ratio remains a target. The company plans to maintain capital levels through consistent buybacks, targeting $400 million to $500 million per quarter, while still prioritizing growth investments and acquisitions. Q: What is the role of the new Chief AI Officer, and how will AI be utilized at Raymond James? A: The Chief AI Officer, Stuart Feld, will lead a dedicated team to evaluate AI developments and use cases. The focus is on using AI to empower financial professionals to better serve clients, rather than bypassing advisors. The team will monitor AI advancements and integrate them into Raymond James' unique advisor-focused approach. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
