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Jefferies' (JEF) Q1 Earnings Beat Estimates as Revenues Rise
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Jefferies Financial Group Inc.’s (JEF - Free Report) first-quarter fiscal 2021 (ended Feb 28) adjusted earnings per share of $2.14 significantly outpaced the Zacks Consensus Estimate of $1.08. Also, the figure compares favorably with the earnings of 37 cents per share recorded in the prior-year quarter.
Results were driven by robust rise in revenues. Both the Investment Banking and Capital Markets, and Asset Management segments’ performance was impressive. However, higher expenses were a headwind.
Net income attributable to shareholders was $582.4 million, up substantially from the $113 million recorded in the prior year.
Revenues & Expenses Rise
Net revenues were $2.5 billion, up 79.4% year over year. Also, the top line beat the Zacks Consensus Estimate of $1.7 billion.
Total expenses were $1.7 billion, up 44.4%. The rise was primarily due to higher compensation and benefits costs.
Impressive Segment Performance
Investment Banking and Capital Markets: Net revenues were $2 billion, up 70.6% from the prior-year quarter. Expenses totaled $1.4 billion, up 57.6%.
Asset Management: Net revenues were $226.7 million, up substantially from $20.3 million recorded in the year-ago quarter. Expenses totaled $46.3 million, up 9.7%.
Merchant Banking: Net revenues were $297.5 million, up 45.4% year over year. Expenses were $179.3 million, down 5.8%.
Corporate: Net revenues were $0.6 million, down from the $9.8 million recorded in the prior year. Expenses were $21.1 million, up 20%.
Share Repurchase Update
During the quarter, Jefferies repurchased 5 million shares for $128 million.
Our Take
Steady improvement in capital markets performance, solid capital position and global footprints are expected to continue supporting Jefferies’ financials.
Jefferies Financial Group Inc. Price, Consensus and EPS Surprise
Among the other banks, JPMorgan (JPM - Free Report) is slated to report first-quarter 2021 results on Apr 14. Citigroup (C - Free Report) and Bank of America (BAC - Free Report) are scheduled to announce on Apr 15.
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From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Jefferies' (JEF) Q1 Earnings Beat Estimates as Revenues Rise
Jefferies Financial Group Inc.’s (JEF - Free Report) first-quarter fiscal 2021 (ended Feb 28) adjusted earnings per share of $2.14 significantly outpaced the Zacks Consensus Estimate of $1.08. Also, the figure compares favorably with the earnings of 37 cents per share recorded in the prior-year quarter.
Results were driven by robust rise in revenues. Both the Investment Banking and Capital Markets, and Asset Management segments’ performance was impressive. However, higher expenses were a headwind.
Net income attributable to shareholders was $582.4 million, up substantially from the $113 million recorded in the prior year.
Revenues & Expenses Rise
Net revenues were $2.5 billion, up 79.4% year over year. Also, the top line beat the Zacks Consensus Estimate of $1.7 billion.
Total expenses were $1.7 billion, up 44.4%. The rise was primarily due to higher compensation and benefits costs.
Impressive Segment Performance
Investment Banking and Capital Markets: Net revenues were $2 billion, up 70.6% from the prior-year quarter. Expenses totaled $1.4 billion, up 57.6%.
Asset Management: Net revenues were $226.7 million, up substantially from $20.3 million recorded in the year-ago quarter. Expenses totaled $46.3 million, up 9.7%.
Merchant Banking: Net revenues were $297.5 million, up 45.4% year over year. Expenses were $179.3 million, down 5.8%.
Corporate: Net revenues were $0.6 million, down from the $9.8 million recorded in the prior year. Expenses were $21.1 million, up 20%.
Share Repurchase Update
During the quarter, Jefferies repurchased 5 million shares for $128 million.
Our Take
Steady improvement in capital markets performance, solid capital position and global footprints are expected to continue supporting Jefferies’ financials.
Jefferies Financial Group Inc. Price, Consensus and EPS Surprise
Jefferies Financial Group Inc. price-consensus-eps-surprise-chart | Jefferies Financial Group Inc. Quote
Currently, the company sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings Dates of Other Banks
Among the other banks, JPMorgan (JPM - Free Report) is slated to report first-quarter 2021 results on Apr 14. Citigroup (C - Free Report) and Bank of America (BAC - Free Report) are scheduled to announce on Apr 15.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>