Raymond James Earnings: 2024 a Trade-Off of Net Interest Income and Capital Markets Revenue

Raymond James reported decent results for its fiscal first quarter ending in December, and similar to other wealth management firms and investment banks, its 2024 results will be affected by the generally offsetting trends of net interest income and capital markets revenue. The company reported net income to common shareholders of $497 million, or $2.32 per diluted share, on $3 billion of net revenue. Net revenue increased 8% from the previous year, as mainly a 13% increase in asset management revenue with more minor contributions in other revenue lines offset a 7% decline in net interest income. We are currently maintaining our $118 fair value estimate for no-moat-rated Raymond James and assess shares are fairly valued.