Raymond James Financial posted a 33 percent increase on profits in its second quarter driven by higher revenues from investment banking and advisory fees.
However, the St. Petersburg brokerage firm's net income of $104.6 million, or 72 cents per share, was five cents shy of consensus estimates from analysts, Seeking Alpha reported. Record quarterly revenues of $1.2 billion, up 12 percent from the year-ago period, exceeded analysts' expectations by $20 million.
CEO Paul Reilly said higher expenses and a seasonal slowdown in mergers and acquisition activity prevented Raymond James from recording higher pre-tax margins.
Year-ago comparisons were skewed because that quarter included expenses connected with the Morgan Keegan integration and a large gain from the sale of an equity investment in Albion Medical Holdings.
The report was released after the close of market Wednesday.