Leucadia's Jefferies Releases Solid Q3 Preliminary Numbers - Analyst Blog

Leucadia National Corporation's (LUK) wholly owned subsidiary, Jefferies Group LLC continued with its growth trajectory, as is evident from its third-quarter (ended Aug 31, 2014) preliminary results for fiscal 2014.

Jefferies' net income came in at $82 million driven by solid top-line performance. Revenues were $835 million, comprising Investment Banking revenues of $461 million, Equities revenues of $163 million and Fixed Income revenues of $207 million.

For the nine months ended Aug 31, Jefferies net earnings were $256 million. Revenues generated totaled $2,457 million, of which roughly 49.1% were Investment Banking revenues, 21.5% were Equities revenues and 28.9% were Fixed Income revenues.   

Leucadia's management believes that these results were by far Jefferies Group's best performance for the third quarter and 9 months in the last 50 years. Jefferies Group is scheduled to release its final third-quarter results on Sep 16.

Jefferies was merged with Leucadia in Mar 2013 to form a limited liability company, Jefferies Group LLC. It handles the company's investment banking and capital market operations. Revenues generated from this business accounted for 24.2% of Leucadia's total revenue in second-quarter 2014.  

Leucadia currently has a market capitalization of $9.2 billion. The company primarily engages in beef processing, manufacturing and real-estate activities, along with various other investment-related affairs in the U.S.
 
Some major players in the diversified operations industry include Federal Signal Corp. (FSS), ITT Corporation (ITT) and Macquarie Infrastructure Company LLC (MIC). All these stocks hold a Zacks Rank #2 (Buy).
 

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