A month has gone by since the last earnings report for Jefferies (JEF Quick QuoteJEF - Free Report) . Shares have added about 1.7% in that time frame, underperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Jefferies due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Jefferies Financial Group Inc. before we dive into how investors and analysts have reacted as of late.

Jefferies Q2 Earnings Meet Estimates on Solid Equity Trading

Jefferies’ 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 equity trading performance. However, weak performances in the IB and asset management businesses, alongside higher expenses, remain a spoilsport.
 
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.

Jefferies’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 subdued equity & debt underwriting and fixed-income trading performance in capital markets, partially offset by a robust performance in equities trading business.

Asset Management: Net revenues were $154.6 million, down 1.2% from the year-ago quarter.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a flat trend in estimates review.

The consensus estimate has shifted -11.36% due to these changes.

VGM Scores

At this time, Jefferies has a poor Growth Score of F, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Jefferies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.