Leucadia National Corporation’s LUK wholly owned subsidiary, Jefferies Group LLC, recently reported fourth-quarter and fiscal year 2015 (ended Nov 30, 2015) results. The firm’s adjusted net earnings totaled $37 million, reflecting remarkable improvement over loss of $17.8 million recorded in the year-ago quarter.
Adjusted earnings excluded an amount of approximately $12.2 million related to operating results and wind-down costs of Jefferies’ Bache business. In Mar 2015, Jefferies Group LLC had signed a definitive agreement to sell majority of its Bache business’ futures activities to Societe Generale S.A.
For fiscal 2015, Jefferies’ adjusted net income came in at $189.5 million, down from $260.4 million in fiscal 2014.
Adjusted revenues were $513.5 million in fourth-quarter fiscal 2015, up 9.3% year over year. The top-line improvement was led by revenue hike in investment banking and asset management fees, and investment income from managed funds businesses. Of total adjusted revenues, Equities revenues were $123.7 million; while revenues from Fixed Income were $8.4 million. Total investment banking revenue was $372.9 million. For fiscal 2015, Jefferies’ adjusted revenues totaled $2,395.1 million, down 14.1% year over year.
In fiscal fourth-quarter, Leucadia's unit Jefferies total non-interest expenses inched up 1% year over year to $476.5 million. Adjusted operating margin in the quarter was 7.2%.
Jefferies was merged with Leucadia in Mar 2013 to form a limited liability company, Jefferies Group LLC. It handles Leucadia’s investment banking and capital market operations. Revenues generated from this business accounted for 24.5% of Leucadia’s total revenue in third-quarter 2015.
With a market capitalization of $6.2 billion, Leucadia currently carries a Zacks Rank #3 (Hold). The company is primarily engaged in beef processing, manufacturing and real-estate activities, along with various other investment-related affairs in the U.S.
Some major players in the industry include E*TRADE Financial Corporation ETFC, Federal Signal Corp. FSS and Macquarie Infrastructure Corporation MIC. While E*TRADE Financial Corporation sports a Zacks Rank #1 (Strong Buy), both Federal Signal and Macquarie Infrastructure carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment