On Sep 26, 2014, we issued an updated research report on Raymond James Financial, Inc. (RJF). This St. Petersburg-based Southwest investment brokerage firm remains focused on improving its private client group (“PCG”) segment.
Raymond James reported third-quarter fiscal 2014 earnings of 85 cents per share on Jul 23, beating the Zacks Consensus Estimate by 11.8%. Also, the reported figure compared favorably with adjusted earnings of 65 cents earned in the prior-year quarter. Results were aided by a rise in revenues, partly offset by higher operating expenses.
The PCG segment witnessed positive growth over the past few years, primarily driven by a rise in fee-based income. This uptrend continued in the first three quarters of 2014 as well. However, mounting operating expenses remain a cause of concern for Raymond James. Over the last few years, operating expenses witnessed a rising trend, mainly due to increasing compensation expenses. This rising trend continued in the first three quarters of 2014 too.
The Zacks Consensus Estimate, for both 2014 and 2015, remained unchanged at $3.22 and $3.62 per share, respectively, over the past 60 days.
Some financial brokerage stocks worth considering include Arlington Asset Investment Corp. (AI), Moelis & Company (MC) and Cowen Group, Inc. (COWN).
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