Raymond James Reports Multiple Records in Fiscal Q1; Capital Markets Decrease Has Offsets

Raymond James reported multiple records in its fiscal first quarter ending in December, and continued strength in capital markets and interest rates will be major swing factors to earnings over the next one to two years. The company reported record quarterly net income of $446 million, or $2.10 per diluted share, on record net revenue of $2.78 billion. Net revenue increased 25% from a year ago, as client assets grew 23% to $1.26 trillion and capital markets revenue grew 36% to $614 million. We are maintaining our fair value estimate for no-moat Raymond James of $99 and believe shares are fairly valued.