Jefferies Group Second Quarter Earnings Sneak Peek

Jefferies Group, Inc. (NYSE:JEF) will unveil its latest earnings on Tuesday, June 19, 2012. Jefferies Group and its subsidiaries operate as independent, full-service global securities and investment banking firm serving companies and their investors.

Jefferies Group, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 29 cents per share, a decline of 25.6% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 31 cents. Between one and three months ago, the average estimate moved up. It has dropped from 36 cents during the last month. Analysts are projecting profit to rise by 15.5% versus last year to $1.19.

Past Earnings Performance: The company has beaten estimates the last two quarters and is coming off a quarter where it topped the forecasts by 4 cents, reporting profit of 32 cents per share against a mean estimate of net income of 28 cents. In the fourth quarter of the last fiscal year, the company exceeded forecasts by 3 cents with profit of 17 cents versus a mean estimate of net income of 14 cents.

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Stock Price Performance: Between March 19, 2012 and June 13, 2012, the stock price fell $6.08 (-31.9%), from $19.06 to $12.98. It saw one of its worst periods between April 26, 2012 and May 4, 2012 when shares fell for seven straight days, dropping 7.5% (-$1.23) over that span. The stock price saw one of its best stretches over the last year between January 4, 2012 and January 13, 2012, when shares rose for eight straight days, increasing 16.5% (+$2.25) over that span.

A Look Back: In the first quarter, profit fell 11.7% to $77.1 million (33 cents a share) from $87.3 million (42 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 4.2% to $1.01 billion from $966.7 million.

Analyst Ratings: There are mostly holds on the stock with five of six analysts surveyed giving that rating.

Key Stats:

After experiencing income drops the past two quarters, the company is hoping to use this earnings announcement to rebound. Net income dropped 17.8% in the fourth quarter of the last fiscal year and then again in the first quarter.

On the top line, the company is hoping to build on a revenue increase last quarter. Revenue fell more than twofold in the fourth quarter of the last fiscal year after increasing in the first quarter.

Wall St. Revenue Expectations: Analysts predict a decline of 1.9% in revenue from the year-earlier quarter to $709.3 million.

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

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