Latest news with #JefferiesFinancialGroup
Yahoo
6 days ago
- Business
- Yahoo
What Jefferies Profit Slump Signals for Bank Stocks
Jefferies Financial Group's second-quarter earnings declined on a slump in the firm's investment-banking and capital-markets businesses. Katherine Doherty has more on "Bloomberg Open Interest."
Globe and Mail
6 days ago
- Business
- Globe and Mail
JEF Q2 Earnings Meet Estimates on Solid Capital Markets, Stock Down
Jefferies Financial Group 's JEF second-quarter fiscal 2025 (ended May 31) adjusted earnings of 43 cents per share matched the Zacks Consensus Estimate. The bottom line compared unfavorably with the prior-year quarter's earnings of 67 cents per share. Results were aided by strong performance in higher capital markets revenues. However, weak performances in the investment banking (IB) and asset management business, alongside higher expenses, remain a spoilsport. The company's shares declined 2.5% in the after-market hours in light of these negatives. Net income attributable to common shareholders (GAAP basis) was $88 million, declining from $145.7 million in the prior-year quarter. Jefferies' Revenues Decline, Expenses Rise Quarterly net revenues were $1.63 billion, down 1.3% year over year. The top line surpassed the Zacks Consensus Estimate of $1.56 billion. Total non-interest expenses were $1.50 billion, up 5% from the prior-year quarter. The rise was due to an increase in almost all cost components except compensation and benefits and underwriting costs. As of May 31, 2025, book value per common share was $49.96, up from $46.57 as of May 31, 2024. Further, adjusted tangible book value per fully diluted share of $32.84 increased from $31.27. JEF's Quarterly Segment Performance Investment Banking and Capital Markets: Net revenues were $1.47 billion, falling 1.6% from the prior-year quarter. The decline was due to lower equity & debt underwriting and fixed-income performance in capital markets, partially offset by solid performance across, along with a robust performance in Equities. Asset Management: Net revenues were $154.6 million, down 1.2% from the year-ago quarter. Jefferies' Dividend Update Concurrently, Jefferies announced a quarterly cash dividend of 40 cents per share. The dividend will be paid out on Aug. 29, 2025, to shareholders as of Aug. 18. Our View on JEF Elevated expenses driven by higher compensation, alongside exposure to geopolitical risk, given its global presence, will likely hurt Jefferies' financials in the near term. Yet, a robust trading and asset management business, alongside improving IB operations, will offer support to some extent. 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 #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Earnings Dates of JEF's Peers JPMorgan JPM is scheduled to report second-quarter 2025 results on July 15. Over the past seven days, the Zacks Consensus Estimate for JPMorgan's quarterly earnings has been revised marginally upward to $4.47. This indicates 1.6% growth from the prior-year quarter. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.) Bank of America BAC is slated to announce second-quarter 2025 results on July 14. Over the past seven days, the Zacks Consensus Estimate for BAC's quarterly earnings has remained unchanged at 89 cents, implying a 7.2% rise from the prior-year quarter. Research Chief Names "Single Best Pick to Double" From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all. This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months. Free: See Our Top Stock And 4 Runners Up Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. JPMorgan Chase & Co. (JPM): Free Stock Analysis Report
Bloomberg
25-06-2025
- Business
- Bloomberg
Jefferies Profit Slumps as Geopolitical Upheaval Hurts Deals
Jefferies Financial Group Inc. 's second-quarter earnings declined on a slump in the firm's investment-banking and capital-markets businesses, with activity muted by economic and geopolitical turmoil. Revenue for the three months ended May 31 also dropped, slipping 1.3% to $1.63 billion, the New York-based firm said in a statement Wednesday. The biggest drops came in equity underwriting and debt capital markets, which both fell from a year earlier, when trading and deals were both climbing.
CNA
25-06-2025
- Business
- CNA
Palantir's surge to leave its mark on Russell reshuffle
NEW YORK :A meteoric rally in shares of Palantir Technologies is likely to leave its imprint on the final reconstitution by FTSE Russell of its benchmark indexes on Friday, when investors can expect a crush of trading volume heading into the closing bell. Every year, FTSE Russell reconstitutes, or refreshes, the components in its range of indexes, such as the Russell 2000 index of small-cap stocks and Russell 1000 index of large-cap names. Together they make up the Russell 3000 index. There are also style indexes such as the Russell 1000 growth and Russell 2000 value. Friday will be the last time the indexes are reconstituted by FTSE Russell once per year - other than when initial public offerings were added on a quarterly basis. The reshuffle forces fund managers to adjust their portfolios to reflect the new weightings and components. "We do pay attention to it because we own a lot of companies that are on that borderline between being in or out of the Russell 2000," said Eric Kuby, chief investment officer at North Star Investment Management in Chicago. "It does seem to be a positive, obviously, for the companies going into the index and a negative when they're coming out." As Palantir has skyrocketed more than 460 per cent since last year's reconstitution, it is expected to move into the top 200 large-caps names in the Russell 1000, creating a void among the mid cap tech sector. Steven DeSanctis, small- and mid-cap equity strategist at Jefferies Financial Group in New York, anticipates that will create a drop of more than 11.1 per cent for the technology sector in the Russell midcap growth index. In addition, he expects Palantir to see the most selling pressure by dollars from passive managers for the reconstitution. With about $10.6 trillion benchmarked to Russell US indexes, according to FTSE Russell, the final moments before the reconstitution is finalized leads to heightened volume as some investors attempt to take advantage of additional liquidity to exploit any price dislocations. "The fact that we now have non-traditional investors in the small-cap space for a couple of months does provide additional liquidity," said DeSanctis. "So if you wanted to make changes to your portfolio, you have more of an opportunity to do so in the reconstitution's time frame." At last year's reconstitution, Nasdaq said nearly 2.9 billion shares, representing a record $95.257 billion, were executed in its "Closing Cross" in 0.878 seconds across Nasdaq-listed securities, topping the prior record of $80.898 billion in 2021. Melissa Roberts, analyst at Stephens Inc in New York, is estimating a $150 billion net trade this year. While FTSE Russell occasionally makes changes to its methodology for inclusion into its indexes, this year saw little in the way of rule changes, although Russell issued a clarification on its domicile rule. "Companies are starting to have dual headquarters," said Catherine Yoshimoto, director of product management at FTSE Russell. "It's a more recent phenomenon... it's been happening over the years, but it really boils down to needing a clarification because there were enough questions around it." Companies that are now expected to be included in the Russell indexes through a change in their headquarters are Brookfield Asset Management and Restaurant Brands. Companies that are being added to the indexes usually see an increase in demand, but that does not always translate to a rise in prices, or what is known as the "wrong way" when the stock falls. Roberts notes that while the additions to the Russell 1000 are generally seeing a climb in price, the small-cap inclusions to the Russell 2000 have declined. "If everyone kind of has the same idea - there's this liquidity event, I have these liquidity suppliers who are picking up shares to facilitate the Russell trade in the market, I want to force back my position or I want to exit a position," Roberts said.
Bloomberg
09-06-2025
- Business
- Bloomberg
Banks Launch Debt for Bain Capital Buyout of Wingstop Franchisee
A group of Wall Street banks have launched the first part of a roughly $1 billion debt sale to fund Bain Capital 's acquisition of restaurant franchisee Sizzling Platter, which operates outposts of chains including Little Caesars, Dunkin', Jersey Mike's and Wingstop. Jefferies Financial Group Inc. is leading the loan offering, which includes a $425 million seven-year first-lien term loan and an $80 million delayed-draw term loan, according to a person with knowledge of the matter, who asked not to be identified discussing a private matter. Proceeds from the loan will be used to finance the company's buyout along with $500 million in other secured debt.
