Embattled investment bank Jefferies, whose stock has been battered down due to investor worries about European debt and short-term financing model at smaller firms, has just announced earnings for the quarter ending November 30 this morning.
The company beat expectations with earnings of $0.17 per share (a figure of around $0.14 to $0.16 was expected, according to various reports), posting a profit of $39 million for the last quarter of 2011.
Investors certainly seem to like the news, shares of Jefferies are up 5% in pre-market trading.
Here's a rundown (figures in parentheses void of accounting gains)
- Net revenues of $554 million ($534 million)
- Net income to Common Shareholders of $48 million ($39 million)
- Net earnings per common share of $0.21 ($0.17)
- Investment Banking revenues of $261 million
- Leverage ratio of 9.9x shareholder's equity
- Trading revenue is down 25% this quarter, to $286 million. [via DealBook]
Jefferies has been the subject of media and analyst scrutiny every since the bankruptcy of MF Global in October, which caused share prices to plumet as investors became more worried about exposure to European debt and high leverage. Year-to-date, the stock is off 55%.
The company has since gone on a very public campaign of transparency, including slashing its PIIGS exposure by half, publicizing detailed reports of its European debt holdings and releasing a 6-page letter from CEO Dick Handler in late November touting that various "lies" had been told about the company.
