On the strength of better-than-expected revenue growth, Raymond James Financial Inc. announced Wednesday that its fiscal second-quarter earnings increased.
The regional broker reported that earnings rose to $55.6 million, or 45 cents a share, from $6.1 million, or a nickel per share, a year earlier. Net revenue increased 26% to $734.4 million and total revenue rose 27% to $750 million. Analysts had expected a profit of 42 cents per share on $703 million of revenue.
Analysts said that any excitement over the significant profit surge from a year earlier should be tempered by the fact that the fiscal second quarter of last year saw significant struggles from the Florida company’s commercial bank due to difficult economic conditions.
Total client assets under administration rose 48% to $242 billion from a year earlier as assets under management rose 28% to $32 billion.
Analysts said they expect assets to increase as Raymond James [RJF] continues to attract top advisors from competitors.