Jefferies' record investment banking revenue signals strong quarter for big banks

The Motley Fool··Read original
3▲3 ▼0Impact / 5
Summary · why it matters

Jefferies Financial reported record investment banking revenue of $1.2 billion, a 58% year-over-year increase, despite missing overall earnings and revenue estimates for its fiscal second quarter. Net earnings rose 5% to $226 million, or $1.02 per share, falling short of the $1.16 per share consensus, while revenue climbed 37% to $2.21 billion, just below the $2.22 billion forecast. The miss was driven by a 46% drop in asset management revenue to $188 million, partly due to losses from subsidiary Point Bonita's exposure to bankrupt First Brands Group. Combined capital markets and investment banking revenue hit a record $2 billion, up 37%, suggesting a strong upcoming quarter for major investment banks like Goldman Sachs and Morgan Stanley, whose reporting periods exclude the weak March market and the Point Bonita drag.

Impact on assets 4

Financials▲ · 3 stocks
Goldman Sachs Group Inc
GS
▲ PositiveDemandrelevance

Jefferies' record investment banking revenue signals strong upcoming quarter for Goldman Sachs.

Morgan Stanley
MS
▲ PositiveDemandrelevance

Jefferies' record investment banking revenue signals strong upcoming quarter for Morgan Stanley.

Digital Finance & Tokenization▲ · 1 stocks
JPMorgan Chase & Co
JPM
▲ PositiveDemandrelevance

Jefferies' strong capital markets revenue suggests positive environment for JPMorgan.

Off-coverage companies 1

First Brands GroupPrivate± Mixed
relevance

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