Q: Comments on their quarter please.
5i Research Answer:
EPS of $2.31 missed estimates of $2.60; revenue of $315.9M beat estimates of $311M. Raymond James lowered its target from $121 to $108. The dividend was raised by 4%. The miss relates to larger provisions for credit losses as the company is taken a conservative approach to the economy. Non-interest revenue was also lower than expected. The outlook for the second half has deteriorated a bit. While disappointing, not overly surprising here. The stock's very low valuation (8X earnings) we think reflects the situation.