Jefferies Group posts 2Q loss as revenue slips

For the quarter ended June 30, Jefferies lost $4.4 million, or 3 cents per share, compared with a profit of $67.8 million, or 45 cents per share, in the year-ago period. The per-share results reflected a 9 percent increase in the number of outstanding shares over last year.

Revenue fell 16 percent to $392.1 million from $465.5 million last year. Revenue from investment banking dropped 51 percent to $109.4 million, while revenue from fixed income and commodities jumped 36 percent to $101.5 million.

Analysts polled by Thomson Financial, on average, expected a loss of 16 cents per share on revenue of $275 million.

Jefferies said it paid $15 million in severance costs during the period. It had an average 2,327 employees in the quarter, more than the corresponding period 2007, but down nearly 200 people from the December quarter. Overall, expenses rose 12 percent to $277.5 million, with incremental increases in floor brokerage and clearing fees, technology and communications and other items, along with higher compensation costs.

In morning trading, Jefferies shares rose $1.87, or 10.8 percent, to $19.19.