Jefferies Group, Inc. (JEF), a securities and investment banking company, reported Tuesday a profit in the third quarter, helped both by revenue from Principal Transactions and lower interest expense. On a per share basis, earnings came in much above the Street view.
For the third quarter, net earnings to common shareholders was $86.28 million or $0.42 per share, compared to a net loss of $31.30 million or $0.18 per share for the previous year. On average, eight analysts polled by Thomson Reuters expected the company to report earnings of $0.28 per share in the third quarter. Analysts' estimate typically excludes special items.
Net revenue for the quarter spiraled up 155% to $700.42 million from $274.65 million for the year-ago period. Five analysts were expecting revenue of $535.52 in the third quarter.
Jefferies recorded income from Principal Transactions of $372.11 million compared to loss of $3.43 million in the corresponding quarter last year. Asset Management fees and investment from managed funds was $20.96 million compared to loss of $3.43 million a year ago.
Revenue from Commissions dipped year-over-year to $94.24 million from $113.42 million, while revenue from Investment Banking reduced to $122.53 million from $130.12 million and Interest income slid to $161.09 million from $209.18 million.
Interest paid on Mandatorily Redeemable Preferred Interest of Consolidated Subsidiaries was $23.59 million, compared to $24.10 million interest received in the past year.
Total Revenues increased to $777.18 million from $453.25 million. Interest Expense came down sharply to $76.76 million from $178.61 million in the year-ago quarter. Total non-interest expenses rose to $501.79 million from $352.41 million.
For the first nine months of the year, net earnings was $186.52 million or $0.92 per share, compared to loss of $96.23 million or $0.64 per share in fiscal 2008. Net revenue advanced 88% to $1.63 billion from $867.92 million.
JEF closed Monday's regular trading hours at $30.15 on the NYSE.
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