Jefferies Group, Inc. (JEF) pre-released very impressive second-quarter results on June 24 that are far ahead of analyst expectations.
Company Description
Jefferies Group, Inc., with its subsidiaries, operates as a securities and investment banking company domestically and internationally. The company was founded in 1962 and has market cap of $3.35 billion.
Jefferies share price took a big hit during the financial crisis in the fall of 2008, but has since rebounded very nicely as the company prepares to report much better than expected second-quarter results.
Second-Quarter Results Pre released
On June 24, Jefferies pre-released its second-quarter results, coming in much better than expected. Revenue should be a record $500 million, while income is expected to top $50 million, a sharp increase from a quarterly loss in the same period last year.
Earnings Details
The company said that the strong results were driven by trading in fixed income and commodities, sales and trading in corporate bonds, asset-backed securities and emerging markets debt. To top it off, Jefferies investment banking revenue is set to exceed $90 million, a 146% increase from last year.
Estimates Sky-Rocket
Estimates have been trending higher over the last 3 months, climbing from a loss of 12 cents to the current projection of 84 cents. The next-year estimate is pegged at $1.10, a 31% earnings growth projection.
The Chart
Shares of JEF have been rallying since early March, climbing from just below $8 to a recent high above $22. More recently, shares have bumped into some short-term resistance near the 6-month high, take a look below.
