Raymond James (RJF) said late Wednesday that it had net revenues of $1.11 billion for the period ending June 30, up 2% from the year-ago quarter but down 3% from the preceding quarter.
Net income was $84 million, or $0.59 per share, up 7% from the year-ago quarter and 5% from the preceding period.
Excluding acquisition expenses of $13.4 million, non-GAAP net income was $92.5 million, or $0.65 per share, an increase of 2% from a year ago but down 4% from the prior quarter.
Analysts had expected the company to have earnings of $0.66 per share on sales of $1.11 billion.
“Most of our businesses performed as expected in the June quarter with the exception of fixed income. An upsurge in interest rates in June resulted in trading losses despite lower inventory levels,” said CEO Paul Reilly (left), in a press release.
Private Client Results
The company said its Private Client Group “showed modest improvement over the preceding quarter.” PCG securities fees & commissions were $624.3 million as of June 30, a nearly 2% increases from $615.2 million as of March 31 and a jump of 8% from $576.3 million a year earlier.
Total revenue for the Private Client Group was $741.6 million vs. $726.8 million in the prior quarter and $684.7 million a year ago.
Pretax net income for the unit declined 12% from the prior quarter but grew 8% from a year ago to $56.7 million.
Despite a 2.4% rise in the S&P 500 index during the most-recent quarter, the unit’s client assets under administration as of June 30, $405.8 billion, were slightly lower than as March 31, $406.8 billion. The company says this decline stemmed from a drop in Canadian-based client assets as measured in U.S.-dollar terms the impact of a rise in medium- and long-term interest rates on fixed-income investments in June.
Assets under management, however, improved to $52.5 billion vs. $51.0 billion in the prior quarter and $40.9 billion a year ago.