Jefferies Q3 revenue beats estimates as dealmaking shines

Overview

• Jefferies Q3 net revenue rises 22% yr/yr, beating analyst expectations, per LSEG data

• Net earnings for Q3 beat analyst estimates, per LSEG data

• Company declares quarterly cash dividend of $0.40 per share

Outlook

• Company optimistic about future amid improved market conditions for M&A

• Jefferies sees strong positioning due to global reach and client relationships

Result Drivers

• INVESTMENT BANKING - Record advisory revenues driven by increased market share and improved conditions for mergers and acquisitions

• ASSET MANAGEMENT - Improved performance across fund strategies, particularly those with a long equity bias, boosted investment returns

• CAPITAL MARKETS - Strong equities performance due to higher global volumes and robust results in equity options and electronic trading

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment banking & brokerage services peer group is "buy"

• Wall Street's median 12-month price target for Jefferies Financial Group Inc is $75.00, about 11.1% above its September 26 closing price of $66.71

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nBwc2zpMva