Jefferies Group fiscal 4Q results top Street view

Jefferies fiscal 4th-qtr results beat Wall Street's expectations as fixed income revenue grows

Associated Press

NEW YORK (AP) -- Investment banking firm Jefferies Group said Tuesday that its fiscal fourth-quarter net income rose 48 percent as its fixed income revenue more than doubled. The company's results beat analysts' estimates and its stock climbed in afternoon trading.

The company, which agreed to be purchased by Leucadia National in an approximately $2.8 billion stock deal, earned $71.6 million, or 31 cents per share, for the three months ended Nov. 30. That's up from $48.4 million, or 21 cents per share, a year ago.

Stripping out Leucadia-related transaction costs, Superstorm Sandy relief donation and other items, earnings were 35 cents per share.

Analysts predicted earnings of 33 cents per share, according to a FactSet survey.

Revenue increased 39 percent to $768.8 million from $554 million. Wall Street expected $730.4 million.

Shares of Jefferies Group gained 54 cents, or 3 percent, to $18.78 in afternoon trading on Tuesday. The stock has traded in a 52-week range of $11.59 to $19.82.

Fixed income revenue more than doubled to $293 million during the quarter, while investment banking revenue rose 8 percent to $283 million.

For the year, Jefferies Group Inc. earned $282.4 million, or $1.22 per share. In the previous year the company earned $284.6 million, or $1.28 per share. Adjusted earnings were $1.31 per share.

Annual revenue climbed 18 percent to $3 billion from $2.55 billion.

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