Analyst Note| Michael Wong, CFA, CPA |
Raymond James broke multiple records in its fiscal fourth quarter ending in September, and its long-term earnings power is trending positively, while benefiting in the near term from strong capital markets activity. The company reported record quarterly net income of $429 million, or $2.02 per diluted share, on a record $2.7 billion of net revenue. Net revenue increased 30% from a year ago, while adjusted net income increased 76%. We are increasing our split-adjusted fair value estimate for no-moat Raymond James to $79 from $72.67.