Jefferies Expected to Post Slightly Higher 4Q Revenue — Earnings Preview

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Jefferies Financial Group Inc. is set to announce its fourth-quarter earnings on Wednesday before the market opens. Here’s what you need to know:

Earnings forecast: The New York-based company is expected to report revenue of $1.89 billion for the quarter, compared to $1.86 billion in the same period a year ago, according to analysts surveyed by FactSet.

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Analysts polled by FactSet expect Jefferies to report net income of $339.5 million, up from $307.3 million a year ago. On a per-share basis, analysts are looking for earnings of $1.34.

what to watch:

–TOUGH COMPS: After a strong 2021 performance in which Jefferies shares rose nearly 58%, investors will be watching to see if the bank can continue to grow. The most recent quarter will provide the first indication of whether the company can keep up with its 2021 revenue and earnings growth this year.

–IB Revenue: Banks are widely expected to post strong investment banking revenue for the latest quarter, driven by continued activity in the area of ​​mergers and acquisitions in the final months of 2021. “We expect 4Q core results to be slightly better. Net interest income and strong investment banking, offsetting further normalization of business and mortgage banking revenues and some more expense creep due to inflation and higher revenues,” JPMorgan analysts said in the past. The week said in a note about the bank earnings.

–Expenditure Crisis: With Wall Street’s bonus season now underway, firms may have to deal with a flood of layoffs from associates and other employees. In an effort to avoid turnover, banks are increasing salaries and offering some new benefits to junior employees. Investors will listen to Jefferies executives for any indication of how those efforts are going.

Write to Will Feuer at [email protected]

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