Jefferies Profit Up 4%, Beating Estimates
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While much of Wall Street is suffering because of stocks’ ongoing bear market, Los Angeles-based Jefferies Group--which caters to institutional investors--said Tuesday its first-quarter profit rose 4%, beating estimates.
Jefferies, which specializes in trading blocks of shares for big clients, reported quarterly net income of $15.7 million, or 63 cents a share. That compared with net income of $15.0 million, or 62 cents a share, a year earlier.
“Historically as a firm, we’ve done well in hard times,” President John Shaw noted. Big investors use Jefferies to quickly--and relatively quietly--buy and sell large amounts of stock.
The two analysts who follow the company expected Jefferies to earn 52 cents and 54 cents, according to market research firm First Call/Thomson Financial.
Total revenue rose 8% to a record $209.7 million. Revenue from corporate finance activities rose 12% to $17 million. Brokerage commissions rose 3% to about $60.5 million.
Jefferies shares (JEF) jumped $3.25 to $33.10 on the NYSE. The price has surged from $26 in early April.
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