Jefferies Financial Group Inc. (JEF Quick QuoteJEF - Free Report) is scheduled to announce fourth-quarter and full-year fiscal 2021 (ended Nov 30) results on Jan 12, before market open. The company’s quarterly revenues and earnings are anticipated to have improved on a year-over-year basis.

In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results were driven by a robust rise in revenues, partly offset by higher expenses.

Jefferies has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 222.85%.

Earnings & Sales Projections for Q4

The Zacks Consensus Estimate for the company’s earnings has been revised 27.3% higher over the past 30 days to $1.40 per share. The estimate indicates a jump of 26.1% from the year-ago quarter’s reported number.

The consensus estimate for sales of $1.9 billion suggests 2.3% growth on a year-over-year basis.

Other Major Q4 Estimates & Factors

The Zacks Consensus Estimate for the Merchant Banking segment’s net revenues is pegged at $238 million, indicating a 12.5% decline from the prior quarter’s reported figure.

The consensus estimate for net revenues of the Corporate segment is pegged at $1 million, suggesting a 4.2% rise sequentially.

The to-be-reported quarter witnessed substantial market volatility mainly on the back of inflation concerns and the Federal Reserve’s slightly hawkish monetary policy stance. While the client activity returned to normalized levels compared to the previous few quarters, higher volatility is likely to have aided the company’s capital markets revenues. The Zacks Consensus Estimate for the same is $1.62 billion, reflecting a significant sequential growth.

Similar to prior quarters, deal-making continued at a rapid pace in the September-November quarter. Likewise, debt and equity issuances were impressive. The consensus estimate for advisory revenues of $418 million implies a decline of 28.4% from the prior quarter. Further, the Zacks Consensus Estimate for total investment banking revenues is $913 million, indicating a fall of 22.6%.

Earnings Whispers

According to our quantitative model, it cannot be conclusively predicted whether Jefferies will be able to beat the Zacks Consensus Estimate this time. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or higher.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Earnings ESP: Jefferies has an Earnings ESP of 0.00%.

Zacks Rank: The company currently carries a Zacks Rank #1 (Strong Buy).

Banks That Warrant a Look

Here are a few bank stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:

The Earnings ESP for First Republic Bank is +3.29% and it carries a Zacks Rank #3, at present. The company is slated to report fourth-quarter and full-year 2021 results on Jan 14.

Over the past 30 days, FRC’s Zacks Consensus Estimate for quarterly earnings has moved 2.1% upward.

The PNC Financial Services Group, Inc. (PNC Quick QuotePNC - Free Report) is scheduled to release fourth-quarter and full-year 2021 earnings on Jan 18. The company, which carries a Zacks Rank #2 at present, has an Earnings ESP of +3.15%. You can see the complete list of today’s Zacks #1 Rank stocks here.

PNC’s quarterly earnings estimates have moved marginally lower over the past month.

Commerce Bancshares (CBSH Quick QuoteCBSH - Free Report) is slated to announce fourth-quarter and full-year 2021 results on Jan 19. The company currently carries a Zacks Rank #3 and has an Earnings ESP of +0.82%.

CBSH’s earnings estimates for the to-be-reported quarter have moved 1.1% north over the 30 days.