Jefferies: Markets Stabilized in Latest Quarter
June 21 2016 - 8:20AM
Dow Jones News
Jefferies Group LLC posted revenue and profit declines in its
second quarter, but said markets largely stabilized from the first
quarter.
The firm, a unit of Leucadia National Corp., reported a profit
of $53.9 million during its fiscal second quarter, compared with a
profit of $59.8 million a year earlier. Revenue fell 9% to $719.4
million.
"We are pleased to report quarterly results at a more normal
level, reflecting better equity and fixed income secondary trading
conditions, although new issue capital markets activity remained
somewhat muted," Rich Handler, chairman and chief executive, and
Brian Friedman, chairman of Jefferies's executive committee, wrote
in a statement. "The trading environment was merely stable versus
robust."
Jefferies is viewed by investors as a sneak-preview of results
for the publicly traded banks, which report in the coming
weeks.
Investment banking revenue fell 37% to $253 million as
"continued slow" activity in new stock issuances and leveraged
finance was partially offset by growth in advisory work.
Still, Jefferies said it was "particularly focused on continuing
to expand our investment banking footprint in the U.S. and Europe,
and are meeting and hiring talented individuals."
In the second quarter, total trading revenue increased 21% to
$462 million as fixed-income revenue jumped 55%, while stock
trading dropped 2%. Two equity block trades that were marked down
during the first quarter by $82 million were marked back up during
the second quarter by $60 million.
Jefferies said "virtually all" of its fixed income business
lines across regions posted enhanced performance.
Write to Austen Hufford at austen.hufford@wsj.com
(END) Dow Jones Newswires
June 21, 2016 08:05 ET (12:05 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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