Jefferies(US:JEF) ZACKS·2025-01-07 14:06Core Viewpoint - Jefferies Financial Group Inc. is expected to report improved fourth-quarter and full-year fiscal 2024 results, with anticipated growth in revenues and earnings compared to the previous year [1][14]. Group 1: Earnings and Revenue Expectations - The consensus estimate for Jefferies' earnings is 85 cents per share, indicating a significant year-over-year increase of 183.3% [14]. - The expected sales for the quarter are $1.75 billion, reflecting a year-over-year growth of 46.2% [14]. - Jefferies has a history of earnings surprises, having surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 7.49% [3]. Group 2: Investment Banking Performance - The investment banking (IB) income is projected to rise significantly, with a consensus estimate of $1.03 billion, suggesting a year-over-year increase of 78.8% [8]. - Advisory fees are expected to reach $566.9 million, representing a substantial year-over-year surge of 81.5% [5]. - Debt underwriting fees are estimated at $197.6 million, indicating a 52.6% increase, while equity underwriting fees are projected at $217.1 million, reflecting a 64.2% rise [7]. Group 3: Trading Income - Jefferies' trading business is anticipated to perform well, driven by increased client activity and market volatility, with equity trading revenues expected to be $348 million, a rise of 28.2% from the prior year [10]. - Fixed-income trading revenues are estimated at $220.5 million, indicating a year-over-year growth of 5.1% [10]. - Total capital markets income is projected to be $568.5 million, reflecting an 18.1% increase compared to the previous year [10]. Group 4: Expense Considerations - Overall costs are expected to be elevated due to investments in franchises and technology upgrades, which may offset the benefits of cost reduction strategies [11][12].