Jefferies Gives Strong Outlook; Shares Jump

Jefferies Group, an investment bank focused on mid-sized companies, on Wednesday projected second-quarter net profit and revenue well in excess of analyst forecasts, and its shares rose almost 9 percent in after-hours trading.

CNBC.com

The New York-based company said it expects net earnings of more than $50 million, equal to about 29 cents per share, on record net revenue exceeding $500 million.

Analysts on average expected profit of 14 cents per share on revenue of $341.2 million, according to Reuters Estimates.

Jefferies said results benefited from fixed income and commodities, helped by record results in sales and trading of corporate bonds, mortgage- and asset-backed debt, interest-rate swaps, municipal bonds and emerging markets debt.

It also said it expects at least $90 million of investment banking revenue, more than twice the first quarter amount. Jefferies expects to release results on July 21.

The company's shares rose above $22 after the forecast was released following the market close. They rose 79 cents to $20.45 in regular trading.

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