Jefferies Financial Group Inc. (NYSE:JEF) Earnings Report

NEW YORK – Jefferies Financial Group Inc. reported third-quarter earnings and revenue that fell short of analyst expectations, leading to a 0.76% decline in after-hours trading.

The investment bank posted net earnings of $167 million, or $0.75 per diluted share, for the quarter ending August 31, 2024. This was lower than the analyst consensus estimate of $0.77 per share. Revenue stood at $1.68 billion, below the expected $1.74 billion.

Despite the earnings miss, Jefferies showed strong performance in its Investment Banking segment. Investment Banking net revenues surged 47% year-over-year to $949 million, driven by record quarterly advisory revenues of $592 million.

“Our Investment Banking net revenues of $949 million were up 18.2% from the prior quarter and 47.3% from the same quarter last year, driven by an increase in advisory activity attributable to market share gains reflecting the early benefits of the investments we have made in our platform over the past few years, as well as improving market conditions,” said CEO Richard Handler and President Brian Friedman in a joint statement.

Capital Markets net revenues decreased 3% sequentially to $671 million, but increased 28.1% year-over-year. The company cited solid overall market conditions and strength across its diversified Equities and Fixed Income businesses.

For the full fiscal year, Jefferies reported net earnings of $463 million, or $2.06 per diluted share, on revenues of $5.08 billion.

The company’s board declared a quarterly cash dividend of $0.35 per share, payable on November 27, 2024, to shareholders of record as of November 18, 2024.

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