Benzinga | Jan 26, 2021 10:45AM EST

Earnings Outlook for Raymond James Financial

Raymond James Financial (NYSE:RJF) unveils its next round of earnings this Wednesday, January 27. Here is Benzinga's everything-that-matters guide for the earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street analysts see Raymond James Financial reporting earnings of $1.72 per share on revenue of $2.09 billion. In the same quarter last year, Raymond James Financial reported EPS of $1.89 on revenue of $2.01 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

If the company were to report earnings in line when it publishes results Wednesday, earnings would be down 8.99%. Revenue would be up 4.03% from the same quarter last year. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2020EPS Estimate 1.33 0.97 1.46 1.93EPS Actual 1.78 1.23 1.20 1.89Revenue Estimate 1.95 B 1.84 B 2.01 B 2.01 BRevenue Actual 2.08 B 1.83 B 2.07 B 2.01 B

Stock Performance

For a full 12 months, the return has risen by 11.34%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Raymond James Financial is scheduled to hold the call at 08:15:00 ET and can be accessed here.