✂ Fed’s first rate cut since 2020: Use our free Stock Screener to find new opportunities fastExplore for FREE

Raymond James profit misses estimates on decline in deals

Published 07/26/2023, 04:45 PM
Updated 07/26/2023, 04:52 PM
GS
-
MS
-

(Reuters) - Raymond James missed quarterly profit estimates on Wednesday as Wall Street's prolonged dealmaking slump impacted its investment banking business, sending its shares down 2% in extended trading.

Investment banking revenue in the third-quarter ended June 30 fell 35% to $141 million, compared to a year earlier.

M&A activity came to a near standstill last year amid heavy market volatility and a risk-off sentiment as investors grappled with rising interest rates and geopolitical turmoil.

While sentiment has since improved considerably this year, large buyout deals and multi-billion listings in the U.S. are yet to stage a meaningful comeback.

The downturn in the once-lucrative investment banking unit echoes the results of larger rivals Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS) reported earlier this month.

On an adjusted basis, Raymond James reported a profit of $1.85 per share, missing analysts' average estimate of $2.16.

In a bright spot, net revenue in the quarter climbed 7% to $2.91 billion.

Net income available to common shareholders came in at $369 million, or $1.71 per diluted share, compared with $299 million or $1.38 per diluted share, a year earlier.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.