Raymond James (RJF) Q3 earnings report preview: what to look for

What happened

Raymond James Financial will report earnings Wednesday afternoon. Last quarter it reported revenues of $3.93 billion, up 15.6% year on year, and beat analysts' revenue, assets under management and earnings per share estimates. This quarter, the market expects revenue to grow 12.9% year on year.

Confirmed

Global impact / market context

The expected 12.9% revenue growth would be faster than the 7.7% increase in the same quarter last year. Because Raymond James has missed revenue estimates several times in two years, hitting this number matters for whether investors treat the quarter as on track.

Analyst inference

Peers Goldman Sachs and Jefferies already reported revenue growth of 23% and 8.5%, both beating estimates, and their shares traded down 1.7% and 1.3% after results. That suggests strong reported numbers alone may not lift brokerage shares.

Analyst inference

What to watch

1. Whether reported revenue grows near the 12.9% expected, after last quarter's $3.93 billion, up 15.6%. Raymond James has missed revenue estimates multiple times in two years, so the actual figure against expectations is key. Confirmed
2. Watch whether the beat on assets under management, which is client money the firm manages, continues, since it was solid last quarter and supports future fee revenue. Proposed
3. Compare Raymond James's revenue growth and share reaction with Goldman Sachs and Jefferies. Weaker growth than Goldman's 23% or a falling share price despite a beat would signal investor disappointment. Analyst inference

Evidence

• stockstory.org