For the quarter ending June 30, Raymond James Financial (RJF) said late Wednesday it had net income of $76.4 million, or 55 cents a share, vs. $46.8 million, or 37 cents per share, for the year-ago period. These results included a $21 million pretax charge for expenses related to its purchase of Morgan Keegan. Without the charge, net income would have been $ 89.2 million, or 64 cents per share. Analysts had expected earnings of 67 cents this period, and its stock traded down 3.4% on Thursday.
Net revenues of $1.09 billion were $214 million higher than the preceding quarter and “slightly better than the anticipated quarterly revenue increment associated with the MK acquisition,” the company said in a press release. This represents a sales jump of 25% over the earlier quarter and 28% over last year; analysts had expected revenues of $975.28 million.
The number of U.S.-based financial advisors stands at 5,487—up from 4,532 in the quarter ending March 31, before the Morgan Keegan deal wrapped up, and from 4,492 a year ago. Including reps in Canada and the U.K., Raymond James now has 6,567 advisors.
“Overall, I am pleased with our quarterly results given the Morgan Keegan integration efforts and the difficult market environment,” said CEO Paul Reilly (right) in a statement. “With respect to Morgan Keegan, the systems and people integration have gone according to plan which is a testament to the combined management team and cultural similarities. Putting clients first has been our mutual guiding principle while making integration decisions.”
Within the Private Client Group, the company says that its legacy operations “improved modestly from the preceding quarter.” It notes that most revenue and earnings increases came from the addition of some 900-plus MK financial advisors, as well as from the roughly 100 advisors joining Raymond James from other firms.