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Jefferies (JEF) Reports Q2 Earnings: What Key Metrics Have to Say

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For the quarter ended May 2023, Jefferies (JEF - Free Report) reported revenue of $1.04 billion, down 24.2% over the same period last year. EPS came in at $0.29, compared to $0.46 in the year-ago quarter.

The reported revenue represents a surprise of -5.93% over the Zacks Consensus Estimate of $1.1 billion. With the consensus EPS estimate being $0.33, the EPS surprise was -12.12%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Jefferies performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Net Revenues- Total Asset Management: $58.63 million compared to the $96.20 million average estimate based on two analysts.
  • Net Revenues by Source- Asset Management- Asset management fees and revenues: $15.93 million compared to the $18.85 million average estimate based on two analysts.
  • Net Revenues by Source- Asset Management- Investment return: $32.48 million versus $37.58 million estimated by two analysts on average.
  • Net Revenues by Source- Asset Management- Allocated net interest: -$8.23 million versus the two-analyst average estimate of -$3.44 million.
  • Net Revenues by Source- Total capital markets: $542.69 million versus the two-analyst average estimate of $498 million.
  • Net Revenues by Source- Total capital markets- Equities: $283.32 million versus the two-analyst average estimate of $273.88 million.
  • Net Revenues- Investment Banking & Capital Markets: $1.05 billion compared to the $1.04 billion average estimate based on two analysts.
  • Net Revenues by Source- Total investment banking- Advisory: $254.16 million versus the two-analyst average estimate of $212.06 million.
  • Net Revenues by Source- Total investment banking- Other investment banking: $17.34 million versus the two-analyst average estimate of $45 million.
  • Net Revenues by Source- Total investment banking- Total investment banking: $509.81 million versus $538.54 million estimated by two analysts on average.
  • Net Revenues by Source- Total investment banking- Debt underwriting: $89.89 million versus $120.32 million estimated by two analysts on average.
  • Net Revenues by Source- Total investment banking- Equity underwriting: $148.43 million compared to the $161.17 million average estimate based on two analysts.
View all Key Company Metrics for Jefferies here>>>

Shares of Jefferies have returned +3.3% over the past month versus the Zacks S&P 500 composite's +3.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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