Jefferies Group Earnings: Beats the Street With Investor Cheers

Jefferies Group Inc. (NYSE:JEF) reported its results for the second quarter. Jefferies Group and its subsidiaries operate as independent, full-service global securities and investment banking firm serving companies and their investors.

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Jefferies Group Inc. Earnings Cheat Sheet

Results: Net income for Jefferies Group Inc. fell to $63.5 million (28 cents per share) vs. $80.6 million (36 cents per share) a year earlier. This is a decline of 21.2% from the year-earlier quarter.

Revenue: Fell 2.5% to $946.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Jefferies Group Inc. reported adjusted net income of 31 cents per share. By that measure, the company beat the mean estimate of 29 cents per share. It beat the average revenue estimate of $681.3 million.

Quoting Management: “Our results reflect our continued strength in investment banking and the durability of our sales and trading platform despite the challenging market environment that again evolved during the quarter,” commented Richard B. Handler, Chairman and Chief Executive Officer of Jefferies. “We believe Jefferies is unique today in our intense focus on offering an integrated, global capital markets platform to our clients and an entrepreneurial culture to our employee-partners.”

Key Stats:

The company’s net income has fallen for the last three quarters. In the first quarter, net income fell 11.7% from the year earlier, while the figure fell 17.8% in the fourth quarter of the last fiscal year.

The company has now topped analyst estimates for the last three quarters. It beat the mark by 4 cents in the first quarter and by 3 cents in the fourth quarter of the last fiscal year.

Looking Forward: Over the last 30 days, analysts have not been optimistic about the company’s next-quarter performance. The average estimate for the third quarter is now 25 cents per share, down from 30 cents. For the fiscal year, the average estimate has moved down from $1.32 a share to $1.16 over the last thirty days.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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