Raymond James Earnings: Holding Up Better Than Many Peers

Raymond James’ earnings are holding up better than many peers' due to the contribution from multiple acquisitions in 2022 and a larger portion of its business being wealth management. The company reported net income to common shareholders of $369 million, or $1.71 per diluted share, on $2.9 billion of net revenue. The company actually booked records for net revenue and client assets in the quarter. Record net revenue ($2.2 billion) and client assets ($1.28 trillion) in the wealth management segment, led to overall record quarterly revenue for Raymond James. Reported earnings were a bit weighed down by $65 million of legal and regulatory provisions. We don’t anticipate making a material change to our $116 fair value estimate for no-moat-rated Raymond James and assess shares are fairly valued.