Jefferies Financial Group misses Q3 expectations, shares dip

NEW YORK - Jefferies Financial Group Inc. (NYSE:JEF) reported third-quarter earnings and revenue that fell short of analyst expectations, sending shares down 0.76% in after-hours trading.

The investment bank posted net earnings of $167 million, or $0.75 per diluted share, for the quarter ended August 31, 2024. This missed the analyst consensus estimate of $0.77 per share. Revenue came in at $1.68 billion, below the $1.74 billion analysts were expecting.

Despite the miss, Jefferies saw 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 declined 3% sequentially to $671 million, but were up 28.1% compared to the same quarter last year. The company cited solid overall market conditions and strength across its diversified Equities and Fixed Income businesses.

For the full fiscal year, Jefferies has generated 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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Source: Investing.com