Goldman Sachs Lowers EPS Estimates on Jefferies

Goldman Sachs is out with its report today on Jefferies JEF, lowering its EPS estimates. In a note to clients, Goldman Sachs writes, "We lower our FY2011-FY2013 EPS estimates for Jefferies to $1.35/$1.65/$1.90 from $1.55/$1.75/$2.00 following weaker than expected F2Q11 results. For 2QFY11, Jeffries reported GAAP EPS of $0.36, which included expenses related to both charitable donations ($4.6 mn) and its pending acquisition of the FCM Prudential Bache ($4.8 mn), which negatively impacted EPS by $0.03. That said, a lower tax rate positively impacted EPS by $0.015, thus ‘core' EPS of $0.37 compared to our $0.43 estimate and consensus of $0.40. We maintain our $21 price target." Goldman Sachs maintains Sell on JEF. Shares of JEF closed Tuesday at $21.35.