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Leucadia Unit Jefferies' Q4 Earnings & Revenues Rise Y/Y

Leucadia National Corporation 's LUK wholly owned subsidiary, Jefferies Group LLC, recently reported fourth-quarter and fiscal year 2015 (ended Nov 30, 2015) results. The firm's adjusted net earnings totaled $37 million, reflecting remarkable improvement over loss of $17.8 million recorded in the year-ago quarter.

Adjusted earnings excluded an amount of approximately $12.2 million related to operating results and wind-down costs of Jefferies' Bache business. In Mar 2015, Jefferies Group LLC had signed a definitive agreement to sell majority of its Bache business' futures activities to Societe Generale S.A.

For fiscal 2015, Jefferies' adjusted net income came in at $189.5 million, down from $260.4 million in fiscal 2014.

Adjusted revenues were $513.5 million in fourth-quarter fiscal 2015, up 9.3% year over year. The top-line improvement was led by revenue hike in investment banking and asset management fees, and investment income from managed funds businesses. Of total adjusted revenues, Equities revenues were $123.7 million; while revenues from Fixed Income were $8.4 million. Total investment banking revenue was $372.9 million. For fiscal 2015, Jefferies' adjusted revenues totaled $2,395.1 million, down 14.1% year over year.

In fiscal fourth-quarter, Leucadia's unit Jefferies total non-interest expenses inched up 1% year over year to $476.5 million. Adjusted operating margin in the quarter was 7.2%.

Jefferies was merged with Leucadia in Mar 2013 to form a limited liability company, Jefferies Group LLC. It handles Leucadia's investment banking and capital market operations. Revenues generated from this business accounted for 24.5% of Leucadia's total revenue in third-quarter 2015.

With a market capitalization of $6.2 billion, Leucadia currently carries a Zacks Rank #3 (Hold). The company is primarily engaged in beef processing, manufacturing and real-estate activities, along with various other investment-related affairs in the U.S.

Some major players in the industry include E*TRADE Financial Corporation ETFC , Federal Signal Corp. FSS and Macquarie Infrastructure Corporation MIC . While E*TRADE Financial Corporation sports a Zacks Rank #1 (Strong Buy), both Federal Signal and Macquarie Infrastructure carry a Zacks Rank #2 (Buy).

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LEUCADIA NATL (LUK): Free Stock Analysis Report

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MACQUARIE INFRA (MIC): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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