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Results benefited from solid improvement in investment banking (IB) business and higher capital markets revenues. The performance of the reportable segments was also strong. However, an increase in non-interest expenses was an undermining factor.
Net income attributable to common shareholders (GAAP basis) was $205.7 million, jumping significantly from $65.6 million in the prior-year quarter.
For fiscal 2024, adjusted earnings from continuing operations were $3.39 per share, which beat the consensus estimate of $3.20 and grew substantially from $1.30 in fiscal 2023. Net income attributable to common shareholders (GAAP basis) was $669.3 million, surging significantly from $260.9 million in the prior year.
Jefferies’ Revenues Jump, Expenses Rise
Quarterly net revenues were $1.96 billion, surging 63.4% year over year. The top line also beat the Zacks Consensus Estimate of $1.84 billion.
In fiscal 2024, net revenues jumped 49.7% to $7.03 billion. The top line also outpaced the consensus estimate of $6.93 billion.
Total non-interest expenses were $1.65 billion, up 48.8% from the prior-year quarter. The rise was due to an increase in almost all cost components.
As of Nov. 30, 2024, book value per common share was $49.42, up from $46.10 as of Nov. 30, 2023. Further, adjusted tangible book value per fully diluted share of $32.36 increased from $30.82.
JEF’s Quarterly Segment Performance
Investment Banking and Capital Markets: Net revenues were $1.64 billion, jumping 54.9% from the prior-year quarter. The rise was driven by solid performance across advisory and equity and debt underwriting businesses, along with a robust performance in Equities and Fixed Income.
Asset Management: Net revenues were $314.5 million, rising substantially from the year-ago quarter’s $140.6 million.
Jefferies’ Dividend Update
Concurrently, Jefferies announced a quarterly cash dividend of 40 cents per share, marking a 14.3% increase from the prior dividend payout. The dividend will be paid out on Feb. 27, 2025, to shareholders as of Feb. 14.
Our View on JEF
A solid trading business and resurgence in IB business are expected to keep supporting Jefferies’ financials. However, elevated expenses might hurt the bottom line to an extent in the near term.
Jefferies Financial Group Inc. Price, Consensus and EPS Surprise
JPMorgan (JPM - Free Report) is scheduled to report fourth-quarter and full-year 2024 results on Jan. 15.
Over the past seven days, the Zacks Consensus Estimate for JPMorgan’s quarterly earnings has been revised 3.4% upward to $3.99. This indicates a 0.5% rise from the prior-year quarter.
Bank of America (BAC - Free Report) is slated to announce fourth-quarter and full-year 2024 results on Jan.16.
Over the past seven days, the Zacks Consensus Estimate for BAC’s quarterly earnings has been revised 1.3% lower to 78 cents, implying an 11.4% growth from the prior-year quarter.
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JEF Q4 Earnings & Revenues Beat as IB Business Rebounds, Expenses Up
Jefferies Financial Group’s (JEF - Free Report) fourth-quarter fiscal 2024 (ended Nov. 30) adjusted earnings from continuing operations of $1.05 per share surpassed the Zacks Consensus Estimate of 98 cents. The bottom line compared favorably with the prior-year quarter’s 30 cents.
See the Zacks Earnings Calendar to stay ahead of market-making news.
Results benefited from solid improvement in investment banking (IB) business and higher capital markets revenues. The performance of the reportable segments was also strong. However, an increase in non-interest expenses was an undermining factor.
Net income attributable to common shareholders (GAAP basis) was $205.7 million, jumping significantly from $65.6 million in the prior-year quarter.
For fiscal 2024, adjusted earnings from continuing operations were $3.39 per share, which beat the consensus estimate of $3.20 and grew substantially from $1.30 in fiscal 2023. Net income attributable to common shareholders (GAAP basis) was $669.3 million, surging significantly from $260.9 million in the prior year.
Jefferies’ Revenues Jump, Expenses Rise
Quarterly net revenues were $1.96 billion, surging 63.4% year over year. The top line also beat the Zacks Consensus Estimate of $1.84 billion.
In fiscal 2024, net revenues jumped 49.7% to $7.03 billion. The top line also outpaced the consensus estimate of $6.93 billion.
Total non-interest expenses were $1.65 billion, up 48.8% from the prior-year quarter. The rise was due to an increase in almost all cost components.
As of Nov. 30, 2024, book value per common share was $49.42, up from $46.10 as of Nov. 30, 2023. Further, adjusted tangible book value per fully diluted share of $32.36 increased from $30.82.
JEF’s Quarterly Segment Performance
Investment Banking and Capital Markets: Net revenues were $1.64 billion, jumping 54.9% from the prior-year quarter. The rise was driven by solid performance across advisory and equity and debt underwriting businesses, along with a robust performance in Equities and Fixed Income.
Asset Management: Net revenues were $314.5 million, rising substantially from the year-ago quarter’s $140.6 million.
Jefferies’ Dividend Update
Concurrently, Jefferies announced a quarterly cash dividend of 40 cents per share, marking a 14.3% increase from the prior dividend payout. The dividend will be paid out on Feb. 27, 2025, to shareholders as of Feb. 14.
Our View on JEF
A solid trading business and resurgence in IB business are expected to keep supporting Jefferies’ financials. However, elevated expenses might hurt the bottom line to an extent in the near term.
Jefferies Financial Group Inc. Price, Consensus and EPS Surprise
Jefferies Financial Group Inc. price-consensus-eps-surprise-chart | Jefferies Financial Group Inc. Quote
Currently, Jefferies has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Dates of JEF’s Peers
JPMorgan (JPM - Free Report) is scheduled to report fourth-quarter and full-year 2024 results on Jan. 15.
Over the past seven days, the Zacks Consensus Estimate for JPMorgan’s quarterly earnings has been revised 3.4% upward to $3.99. This indicates a 0.5% rise from the prior-year quarter.
Bank of America (BAC - Free Report) is slated to announce fourth-quarter and full-year 2024 results on Jan.16.
Over the past seven days, the Zacks Consensus Estimate for BAC’s quarterly earnings has been revised 1.3% lower to 78 cents, implying an 11.4% growth from the prior-year quarter.