Jefferies Loves Fees (Fees, Fees, Fees)

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Profits at Jefferies shot up 48% during the second quarter, the firm said today. The surge was due in large part to everyone's favorite legalized crack-- investment banking fees. IB revenues were up 81% to a record $223.1 million from 2006's $122.9 million.
This is one of those “better than expected” moments. Analysts had pegged net income growth at 39 cents per share and it came in at 45 cents. That’s a 15 percent beat over expectations. Pretty nice but not quite worthy of a celebratory dwarf-toss.
Dick Handler, Chairman and CEO applauded 4/1-6/30 as the "best quarter in Jefferies' 45-year history."
Congrats, etc, but come on, Dick. Better than the first quarter of 1987? We think not.
UPDATE: A VP with the bank confirms: "All I can say is that while there won't be dwarfs, odds of strippers are high to very high."
Growth in investment banking boosts Jefferies [MarketWatch]
Jefferies Press Release

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