Securities and investment banking firm Jefferies Group, Inc. (JEF) reported Thursday a profit for the third quarter that increased from last year, reflecting higher revenues and lower non-compensation expenses. Both adjusted earnings per share and quarterly revenues topped analysts' expectations.
"On October 2, Jefferies will be 50 years old. Despite a turbulent and often treacherous environment, we have just finished the best nine-month period in our firm's history. Our equity base of $3.7 billion has never been more robust, and our balance sheet and liquidity have never been stronger," Chairman and CEO Richard Handler said in a statement.
The New York-based company reported net earnings of $70.17 million or $0.31 per share for the third quarter, higher than $68.28 million or $0.30 per share in the prior-year quarter.
Excluding items, adjusted earnings for the latest quarter was $72.97 million or $0.32 per share, compared to $22.90 million or $0.10 per share in the year-ago quarter.
On average, six analysts polled by Thomson Reuters expected the company to report earnings of $0.28 per share for the third quarter. Analysts' estimates typically exclude special items.
Total revenues increased to $945.05 million from $794.10 million in the year-ago quarter. Net revenues, less mandatorily redeemable preferred interest, for the quarter grew to $730.83 million from $523.95 million in the same quarter last year, and topped seven Wall Street analysts' consensus estimate of $703.69 million.
Commissions revenue declined to $119 million from $155 million in the prior-year quarter. Principal transactions revenue was $297 million, compared to last year's negative revenue of $74 million. Revenues from investment banking declined to $260 million from $294 million in the year-ago quarter.
In addition, the company's interest revenue dropped to $244 million from $353 million a year ago. Meanwhile, advisory net revenues grew 24 percent to $133 million from $107 million last year.
Non-compensation expense for the quarter decreased to $168 million from $169 million in the prior-year quarter. Total non-interest expenses for the quarter were $608 million, up from $469 million a year ago.
Separately, the company also declared a quarterly dividend of $0.075 per share of common stock, payable on November 15 to stockholders of record on October 15, 2012.
JEF closed Monday's regular trading session at $15.66, down $0.04 on a volume of 2.68 million shares, sharply lower than the three-month average volume of 1.72 million shares.
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