Free Trial

Jefferies Beats On EPS, Limited Succour For Global Peers

CREDIT UPDATE

Jefferies (JEF US) last night gave a small preview into 4Q23 results season (which starts Friday) with results to Nov-23 (released after last night's close).

  1. JEF beat (a very thin) consensus marginally on revenues (USD1,197m vs. USD1,151m est.) but moreso at EPS level (30.1c vs. 25.7c est.). This was, however, revenues -17% vs. 4Q22, profits halved and an RoTE of 3.8% for the quarter, similar to the FY23 figure. A tough year.
  2. By IB line and vs. 4Q22:
    FICC trading was -13%
    Equities +9%
    These big two lines are a little weaker than expectations for the global majors, esp. in FICC.
    M&A advisory -18% (deal drought continued)
    ECM +21%
    DCM +110% (base effect from very quiet prior period).
  3. in terms of outlook, mgmt indicated 2023 as a "trough year" which seems fair. However, the FICC figures are below the expectations for the global peers (BBG estimates 0%) and the spike in volatility in Oct-23 does not seem to have carried through to JEF's revenue figures.
Upcoming results all on Friday (times are London):
  • Pre-US mkt: Blackrock and BNY-Mellon
  • 1145 Bank of America
  • 1200 Wells Fargo and JPMorgan
  • 1300 Citigroup

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.