Jefferies dips ahead of quarterly results; asset management in focus
Jefferies Financial Group shares were down 0.7% at $47.34 on Monday ahead of quarterly results due after the bell, with investors focused on its asset management unit. LSEG data compiled ahead-of-results estimates point to fiscal Q3 revenue of $2.2 billion and adjusted EPS of $1.00.
01 a yr ago, per data compiled * In its last report, JEF notched record investment banking rev but missed profit estimates due to weakness in asset management, a segment it has been repositioning amid exposure to bankrupt auto-parts supplier First Brands * A recent fraud lawsuit involving a JEF-linked fund has kept a spotlight on the co's investments * JEF's results sometimes provide investors an early read into what's ahead for larger investment banks as they get set to report results in coming weeks * Earlier this month, Bank of America CEO Brian Moynihan said at an industry conference he expects BAC's investment banking fees to drop by at least 10% in the qtr, while sales and trading will be flat * JEF stock down ~24% YTD including ~10% fall in Sept.
5% MTD * Avg rating of 5 analysts covering the stock is "buy"; median PT $61 (Lance Tupper is a Reuters market analyst. com 1-646-279-6380)