JEF - Jefferies Financial posts Q2 earnings miss boosts buybacks to $250M
2023-06-27 16:53:56 ET
Jefferies Financial Group ( NYSE: JEF ) stock retreated as much as 5.3% in Tuesday after-hours trading after delivering Q2 earnings that trailed Wall Street expectations and dropped from the prior quarter in the wake of subdued M&A activity and low volumes of capital market issuances.
"While we are disappointed with the OpNet results, we remain confident that we will ultimately realize value in excess of the book value of our residual merchant banking portfolio," management said in a statement.
JEF's board, meantime, has raised the company's share repurchase authorization back to a total of $250M.
Q1 GAAP EPS of $0.05, falling short of the $0.27 consensus, fell from $0.57 in Q1 and from $0.45 in the year-ago period.
Revenue of $1.04B, matching the average analyst estimate, declined from $1.28B in the prior quarter and from $1.34B a year before.
Investment Banking and Capital Markets revenue came in at $1.05B for the quarter ended May 31, 2023, down from $1.21B for the quarter ended Feb. 28, 2023, and from $1.11B for the three months ended May 31, 2022.
Asset Management revenue of -$22.4M compared with $78.3M in Q1 and $234M in Q2 of last year.
Annualized return on adjusted tangible equity of 0.7% plunged from 5.8% in the year-earlier quarter.
Earlier, Jefferies ( JEF ) declared a quarterly dividend of $0.30 a share, in line with the previous payout .
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Jefferies Financial posts Q2 earnings miss, boosts buybacks to $250M