Jefferies Net Revenues Surge 45%



Investment banking firm Jefferies reported better-than-expected earnings this morning as sales surged more than 45 per cent during the company’s fiscal third quarter.

The company reported adjusted earnings per share of $0.32, ahead of expectations for $0.26.

The jump in sales, which hit $738.9 million during the period, was largely attributable to gains in Jefferies fixed income division, which saw revenues rise eight-fold to $266 million.

“Despite a turbulent and often treacherous environment, we have just finished the best nine-month period in our firm’s history,” Chief Executive Richard Handler said. “Our equity base of $3.7 billion has never been more robust, and our balance sheet and liquidity have never been stronger.”

Jefferies advisory group also saw a rebound during the third quarter, with revenues up 24 per cent to $133 million.

The growth in top and bottom line results helped push greater compensation paid by the firm, which increased 46 per cent to $440 million. At that rate, the firm’s compensation-to-revenues increased to 59.6 per cent from 58.8 per cent a year earlier.

Jefferies employed 3,814 people at the quarter end, roughly in line with its workforce three months earlier.

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