Jefferies (JEF) got here out with quarterly earning
Jefferies (JEF) got here out with quarterly earnings of $2.14 per share, beating the Zacks Consensus Estimate of $1.08 per share. This compares to earnings of $0.37 per share a yr in the past. These figures are adjusted for non-recurring objects.
This quarterly report represents an earnings shock of 98.15%. 1 / 4 in the past, it was anticipated that this funding banking and capital markets firm would publish earnings of $0.14 per share when it truly produced earnings of $1.11, delivering a shock of 692.86%.
Over the past 4 quarters, the corporate has surpassed consensus EPS estimates 4 occasions.
Jefferies, which belongs to the Zacks Monetary – Miscellaneous Companies business, posted revenues of $2.49 billion for the quarter ended February 2021, surpassing the Zacks Consensus Estimate by 47.61%. This compares to year-ago revenues of $1.48 billion. The corporate has topped consensus income estimates 4 occasions over the past 4 quarters.
The sustainability of the inventory’s speedy worth motion based mostly on the recently-released numbers and future earnings expectations will largely rely upon administration’s commentary on the earnings name.
Jefferies shares have added about 33.8% because the starting of the yr versus the S&P 500’s achieve of 4.1%.
What’s Subsequent for Jefferies?
Whereas Jefferies has outperformed the market thus far this yr, the query that involves traders’ minds is: what’s subsequent for the inventory?
There are not any straightforward solutions to this key query, however one dependable measure that may assist traders handle that is the corporate’s earnings outlook. Not solely does this embody present consensus earnings expectations for the approaching quarter(s), but in addition how these expectations have modified these days.
Empirical analysis reveals a robust correlation between near-term inventory actions and tendencies in earnings estimate revisions. Buyers can observe such revisions by themselves or depend on a tried-and-tested ranking instrument just like the Zacks Rank, which has a formidable observe file of harnessing the facility of earnings estimate revisions.
Forward of this earnings launch, the estimate revisions development for Jefferies was favorable. Whereas the magnitude and path of estimate revisions might change following the corporate’s just-released earnings report, the present standing interprets right into a Zacks Rank #1 (Robust Purchase) for the inventory. So, the shares are anticipated to outperform the market within the close to future. You may see the entire checklist of at this time’s Zacks #1 Rank (Robust Purchase) shares right here.
It is going to be fascinating to see how estimates for the approaching quarters and present fiscal yr change within the days forward. The present consensus EPS estimate is $0.62 on $1.three billion in revenues for the approaching quarter and $2.57 on $5.36 billion in revenues for the present fiscal yr.
Buyers must be aware of the truth that the outlook for the business can have a fabric affect on the efficiency of the inventory as properly. When it comes to the Zacks Business Rank, Monetary – Miscellaneous Companies is at present within the prime 43% of the 250 plus Zacks industries. Our analysis reveals that the highest 50% of the Zacks-ranked industries outperform the underside 50% by an element of greater than 2 to 1.
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Jefferies Monetary Group Inc. (JEF): Free Inventory Evaluation Report
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