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Leucadia National Corporation reported relatively healthy third-quarter 2017 results with net income of $99.4 million or 27 cents per share compared with $154.4 million or 41 cents per share in the year-ago quarter. The year-over-year decrease in earnings was due to unrealized pre-tax mark-to-market gain of $91.8 million in the third quarter of 2016. However, earnings comfortably beat the Zacks Consensus Estimate of 17 cents.
Total revenues for the reported quarter increased to $2,896.5 million from $2,676.4 million in the prior-year period due to solid organic growth. Revenues also exceeded the Zacks Consensus Estimate of $2,655 million.
Leucadia National Corporation Price, Consensus and EPS Surprise
In the reported quarter, Leucadia recorded an improved performance in the debt capital market, along with a solid contribution from equity capital markets, advisory activities and a favorable sales and trading environment. With significant margin contribution from National Beef and other businesses, Leucadia remains well positioned to grow.
During the quarter, Jefferies’ revenues improved to $802.9 million from $656.5 million in the year-earlier quarter primarily driven by record investment banking revenues of $476 million. National Beef revenues increased to $2,039.3 million from $1,747 million owing to a balanced supply of cattle and robust end-market demand. Revenues from Other Financial Services businesses including FXCM, HomeFed, Leucadia Asset Management, Berkadia and Foursight Capital declined to $37.7 million from $54.7 million. Other Merchant Banking businesses recorded a negative return on investment of $5.1 million as against revenues of $217.1 million owing to lower industry-wide sales trends and a few underperforming stores of Garcadia. Corporate & Other segment revenues improved to $21.7 million from $1 million in the year-ago period.
Other Financial Details
During the reported quarter, Leucadia repurchased 2.5 million shares at an average price of $24.89 per share, bringing its repurchase tally to 12.5 million shares over the past three years at an average price of $20.98 per share. Leucadia currently has 12.5 million shares remaining for repurchase.
Danaher has a long-term earnings growth expectation of 10.6%. It has a positive earnings surprise history with an average of 2.6% for the trailing four quarters, beating estimates in each.
Honeywell has a long-term earnings growth expectation of 9.2%. It has a positive earnings surprise history with an average of 1.2% for the trailing four quarters, beating estimates thrice.
ITT has a long-term earnings growth expectation of 15%. It has a positive earnings surprise history with an average of 6% for the trailing four quarters, beating estimates thrice.
Zacks’ Best Private Investment Ideas
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Leucadia (LUK) Surpasses Q3 Earnings & Revenue Estimates
Leucadia National Corporation reported relatively healthy third-quarter 2017 results with net income of $99.4 million or 27 cents per share compared with $154.4 million or 41 cents per share in the year-ago quarter. The year-over-year decrease in earnings was due to unrealized pre-tax mark-to-market gain of $91.8 million in the third quarter of 2016. However, earnings comfortably beat the Zacks Consensus Estimate of 17 cents.
Total revenues for the reported quarter increased to $2,896.5 million from $2,676.4 million in the prior-year period due to solid organic growth. Revenues also exceeded the Zacks Consensus Estimate of $2,655 million.
Leucadia National Corporation Price, Consensus and EPS Surprise
Leucadia National Corporation Price, Consensus and EPS Surprise | Leucadia National Corporation Quote
Segmental Performance
In the reported quarter, Leucadia recorded an improved performance in the debt capital market, along with a solid contribution from equity capital markets, advisory activities and a favorable sales and trading environment. With significant margin contribution from National Beef and other businesses, Leucadia remains well positioned to grow.
During the quarter, Jefferies’ revenues improved to $802.9 million from $656.5 million in the year-earlier quarter primarily driven by record investment banking revenues of $476 million. National Beef revenues increased to $2,039.3 million from $1,747 million owing to a balanced supply of cattle and robust end-market demand. Revenues from Other Financial Services businesses including FXCM, HomeFed, Leucadia Asset Management, Berkadia and Foursight Capital declined to $37.7 million from $54.7 million. Other Merchant Banking businesses recorded a negative return on investment of $5.1 million as against revenues of $217.1 million owing to lower industry-wide sales trends and a few underperforming stores of Garcadia. Corporate & Other segment revenues improved to $21.7 million from $1 million in the year-ago period.
Other Financial Details
During the reported quarter, Leucadia repurchased 2.5 million shares at an average price of $24.89 per share, bringing its repurchase tally to 12.5 million shares over the past three years at an average price of $20.98 per share. Leucadia currently has 12.5 million shares remaining for repurchase.
Moving Forward
Leucadia currently carries a Zacks Rank #2 (Buy). Other stocks in the industry worth considering include Danaher Corporation (DHR - Free Report) , Honeywell International Inc. (HON - Free Report) and ITT Inc. (ITT - Free Report) , each carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Danaher has a long-term earnings growth expectation of 10.6%. It has a positive earnings surprise history with an average of 2.6% for the trailing four quarters, beating estimates in each.
Honeywell has a long-term earnings growth expectation of 9.2%. It has a positive earnings surprise history with an average of 1.2% for the trailing four quarters, beating estimates thrice.
ITT has a long-term earnings growth expectation of 15%. It has a positive earnings surprise history with an average of 6% for the trailing four quarters, beating estimates thrice.
Zacks’ Best Private Investment Ideas
While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.
Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors.
Click here for Zacks' private trades >>