Jefferies Loves Fees (Fees, Fees, Fees)

Author:
Publish date:

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

Related

Layoffs Watch '12: Jefferies

Cuts are said to have down at the best paid bank on Wall Street. "Significant layoffs at Jefferies yesterday, today and more to come in IB. Nine from industrials group alone. Cuts go from 1st yr analyst to SVP. Some groups (m&a, healthcare) still waiting to hear..."