Raymond James Financial (RJFS) met earnings expectations on Wednesday, July 21, and beat revenue estimates on strong performance in its private-client operations.
It reported fiscal third-quarter EPS of $0.48, up from $0.35 last year and $0.45 in the previous quarter. Net income was $60.7 million on sales of $747.4 million.
The private-client group – which includes 5300-plus advisors in multiple channels — has sales of $484.8 million, up 31% from the previous year and 3% from the earlier quarter. Pre-tax income for the division rose to $44.8 million, a year-over-year jump of 144% and a sequential increase of 23%.
“The Private Client Group results were largely driven by past (’08-’09) recruiting success,” said CEO Paul Reilly in a conference call with analysts on July 22. “That’s the real story of the quarter.”
The division, he said, accounted for 64% of companywide revenue and 45% of pre-tax income for the quarter ended June 30, 2010.
The financial-services company says it has $27.5 billion in assets under management (AUM), up from $22.6 billion a year ago and off a bit from $27.6 billion in the earlier quarter.
Assets under administration stood at $231 billion in the April-June period this year vs. $196 billion last year and $242 billion in the January-March period of 2010.