We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Jefferies (JEF) Q1 Earnings Lag Estimates, Costs Decline
Read MoreHide Full Article
Jefferies Financial Group Inc.’s (JEF - Free Report) earnings per share for the three-month period ended Feb 28, 2019 came in at 14 cents, lagging the Zacks Consensus Estimate of 24 cents. The reported figure compares unfavorably with earnings of 34 cents per share reported during the three-month period ended Mar 31, 2018.
The company’s results were hurt by a decline in revenues. Nevertheless, lower expenses were a positive. The Merchant Banking segment’s performance was decent.
Net income attributable to shareholders for the first quarter of 2019 came in at $44.8 million, down 64% year over year.
Revenues & Expenses Decline
Net revenues for the reported quarter were $828.4 million, down 7.5% year over year.
Total expenses were $806.4 million, down 9.4% year over year. This decline was mainly due to a fall in compensation and benefits costs, and cost of sales.
Segmental Information
Jefferies Group: This segment reported net revenues of $685.7 million, down 16.5% year over year. Expenses came in at $623.1 million, slipping 10.8% year over year.
Merchant Banking: Net revenues came in at $136.3 million, surging 84.5% year over year. Expenses were $143.5 million, down 7.5% year over year.
Corporate: This segment reported net revenues of $4.2 million, up 36.7% year over year. Expenses came in at $25.5 million, up 3.8% year over year.
Share Repurchases
During the reported quarter, the company repurchased 9.6 million shares for $195 million.
Our Viewpoint
Jefferies is a geographically diversified company, with presence in almost all the major global markets. Thus, risks stemming from geographical diversification might hurt financials. Moreover, elevated costs are likely to hurt profits. However, decent revenue growth remains a positive for the company. Further, supported by a solid capital position, the company is expected to continue enhancing shareholder value through efficient capital deployment activities.
JEFFERIES FINANCIAL GROUP INC. Price, Consensus and EPS Surprise
Among the other finance companies, JPMorgan Chase (JPM - Free Report) is scheduled to report quarterly results on Apr 12. Citigroup Inc. (C - Free Report) and The Bank of New York Mellon Corp. (BK - Free Report) are expected to report numbers on Apr 15 and Apr 17, respectively.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
Image: Bigstock
Jefferies (JEF) Q1 Earnings Lag Estimates, Costs Decline
Jefferies Financial Group Inc.’s (JEF - Free Report) earnings per share for the three-month period ended Feb 28, 2019 came in at 14 cents, lagging the Zacks Consensus Estimate of 24 cents. The reported figure compares unfavorably with earnings of 34 cents per share reported during the three-month period ended Mar 31, 2018.
The company’s results were hurt by a decline in revenues. Nevertheless, lower expenses were a positive. The Merchant Banking segment’s performance was decent.
Net income attributable to shareholders for the first quarter of 2019 came in at $44.8 million, down 64% year over year.
Revenues & Expenses Decline
Net revenues for the reported quarter were $828.4 million, down 7.5% year over year.
Total expenses were $806.4 million, down 9.4% year over year. This decline was mainly due to a fall in compensation and benefits costs, and cost of sales.
Segmental Information
Jefferies Group: This segment reported net revenues of $685.7 million, down 16.5% year over year. Expenses came in at $623.1 million, slipping 10.8% year over year.
Merchant Banking: Net revenues came in at $136.3 million, surging 84.5% year over year. Expenses were $143.5 million, down 7.5% year over year.
Corporate: This segment reported net revenues of $4.2 million, up 36.7% year over year. Expenses came in at $25.5 million, up 3.8% year over year.
Share Repurchases
During the reported quarter, the company repurchased 9.6 million shares for $195 million.
Our Viewpoint
Jefferies is a geographically diversified company, with presence in almost all the major global markets. Thus, risks stemming from geographical diversification might hurt financials. Moreover, elevated costs are likely to hurt profits. However, decent revenue growth remains a positive for the company. Further, supported by a solid capital position, the company is expected to continue enhancing shareholder value through efficient capital deployment activities.
JEFFERIES FINANCIAL GROUP INC. Price, Consensus and EPS Surprise
JEFFERIES FINANCIAL GROUP INC. Price, Consensus and EPS Surprise | JEFFERIES FINANCIAL GROUP INC. Quote
Currently, Jefferies carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Among the other finance companies, JPMorgan Chase (JPM - Free Report) is scheduled to report quarterly results on Apr 12. Citigroup Inc. (C - Free Report) and The Bank of New York Mellon Corp. (BK - Free Report) are expected to report numbers on Apr 15 and Apr 17, respectively.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.
This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.
See their latest picks free >>