Raymond James Financial has announced a significant increase in earnings for its fiscal third quarter. The company experienced a 7% jump in revenue, attributed to higher interest rates and fees.
Strong Financial Performance
The investment holding company recorded a profit of $369 million, or $1.71 per share, for the quarter ending June 30. This is compared to $299 million, or $1.38 per share, in the same period last year. Adjusted earnings, which exclude one-time items, amounted to $1.85 per share. While this figure fell short of analysts' expectations of $2.15 per share, it still represents a positive performance for Raymond James Financial.
Robust Revenue Growth
Revenue for the quarter reached $2.91 billion, up from $2.72 billion in the previous year. This figure aligns with the market consensus according to FactSet.
Raymond James Financial's success can be attributed to higher short-term interest rates and fees from third-party banks. These gains offset declines in revenue across its investment banking, brokerage, and asset management segments.
Record-High Assets Under Administration
The company's private client group saw an impressive increase in assets under administration, reaching a record-high of $1.28 trillion.
Despite these positive results, shares in Raymond James Financial experienced a 2% decrease in aftermarket trading, falling to $108.53.
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