Jefferies dips heading into results, with asset management in focus
JEF•Jefferies shares fell 0.7% ahead of quarterly results due after the bell. Analysts expect fiscal third-quarter revenue to rise 6% year over year to $2.2 billion, with adjusted EPS of $1.00 versus $1.01 a year earlier.
1. Results expectations
Investors are focused on Jefferies’ asset management unit as the company prepares to report results. In its last report, Jefferies posted record investment banking revenue but missed profit estimates amid weakness in asset management.
2. Investment concerns
Jefferies has been repositioning its asset management segment amid exposure to bankrupt auto-parts supplier First Brands, while a recent fraud lawsuit involving a Jefferies-linked fund has kept attention on its investments. Its results sometimes provide an early read on larger investment banks ahead of their reports in coming weeks. Jefferies shares were down about 24% year to date, including a roughly 10% fall in September.
