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Raymond James CEO: 100 Consecutive Quarters of Profitability

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    Raymond James CEO Paul Reilly on the company’s earnings and outlook.

  • Duration 3:05
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President James first quarter earnings have been released just moments ago it's been a quarter -- with a lot of uncertainty for the economy so debate beat expectations joining us -- -- -- Fox Business exclusive.

This -- -- Raymond James Financial CEO what do you think.

About the number talk.

Well David pretty good we had good revenue growth beat expectations.

Up 4% and good bottom line growth -- -- -- expectations.

In the midst of our largest acquisition ever but.

I think the bigger story is a hundred consecutive quarters of profitability we've -- Profitable every Monday every quarter since black Monday quarter of 1987 where we took a trading loss so we can we wouldn't close sadat's.

To keep our clients liquid so it's been quite a run.

Well let's let's look at a slightly smaller -- -- if you don't mind the past three months.

The past three months you've been doing extremely well the stock -- have been -- on a very very strong upward.

Trajectory is is that because of what we've been hearing about all the retail investors.

Getting rid of their -- fears from 2008 getting back into the market and going to people like Raymond James.

-- I think it's a combination of things certainly we're well positioned with our investors and any movement into the retail market.

Typically helps retail brokerage firms.

Also because of interest rate sensitivity any movement in interest rates -- there's a big impact to our bottom line a hundred basis points in short term rates.

This is about a 120 million -- pretax extra earnings.

And also our positioning with Morgan Keegan that immigration has gone extremely well.

To date and I think that people are putting a premium.

On the combined company after the integration is complete.

-- you have about 3000.

People work for -- -- kind of -- independent contractors these advisors -- 3000 advisors.

What -- they tell you about their business there that they're the people frankly that tune into Fox Business are interested in the future of the market here.

We another very similar our been depended on our employee advisors have the same attitude retreat from the -- -- both.

-- own their book they work for their clients they have no product pressures in fact.

Even tore -- we just rolled out announced a new product neutral group where -- paid the same.

No matter what they sell records are independent businesses and Paul that's the point is that they have that they have different tax challenges in different regulatory challenges how are they doing.

They're doing very well I think the pressure is that every few years the government looks attacked taxing independent contractors as employees.

And so part of this industry is.

Held that often you know they do operate as independent businesses so.

They worry about that tax change which would impact their independent status.

And you know I think the whole industry is looking at a fiduciary standard and we want a common standard across every one no matter what form they do business and and those the two big issues one tax.

And when regulatory that I think a lot of the advisors worry about.

That's -- a flat tax would work so well but that's just me saying it Paul -- Lee Raymond James good -- Paul thank you congratulation.

All right thanks David thank you sandy RE.

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