We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
JEF Stock Falls 3.6% Since Q3 Earnings Beat, IB Income Solid
Read MoreHide Full Article
Key Takeaways
Jefferies reported adjusted Q3 EPS of $1.05, which beat the Zacks Consensus Estimate of 79 cents.
Net revenues climbed 21.6% to $2.05 billion, led by investment banking and capital markets strength.
Total non-interest expenses rose 19.9% to $1.72 billion, driven by increases across most cost components.
Shares of Jefferies Financial Group (JEF - Free Report) have declined 3.6% since the announcement of its quarterly results on Sept. 29. Its third-quarter fiscal 2025 (ended Aug. 31) adjusted earnings of $1.05 per share handily surpassed the Zacks Consensus Estimate of 79 cents. The bottom line compared favorably with the prior-year quarter’s earnings of 78 cents per share.
Results were aided by strong performance in higher capital markets revenues, solid performances in the investment banking (IB) and asset management businesses. However, higher expenses remain a spoilsport.
Net income attributable to common shareholders (GAAP basis) was $224 million, up from $167.1 million in the prior-year quarter.
Jefferies’ Revenues Rise, Expenses Increase
Quarterly net revenues were $2.05 billion, up 21.6% year over year. The top line surpassed the Zacks Consensus Estimate of $1.89 billion.
Total non-interest expenses were $1.72 billion, up 19.9% from the prior-year quarter. The rise was due to an increase in almost all cost components except the cost of sales.
As of Aug. 31, 2025, book value per common share was $50.60, up from $48.89 as of Aug. 31, 2024. Furthermore, the adjusted tangible book value per fully diluted share increased from $31.87 to $33.38.
JEF’s Quarterly Segment Performance
Investment Banking and Capital Markets: Net revenues were $1.86 billion, rising 14.7% from the prior-year quarter. The growth was driven by higher advisory revenues, equity and debt underwriting alongside robust equity and fixed income performance.
Asset Management: Net revenues were $176.9 million, a significant jump from $59 million in 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 Nov. 26, 2025, to shareholders as of Nov. 17.
Our View on JEF
A robust trading and asset management business, improved IB operations and strategic joint ventures and partnerships will offer support to some extent. However, elevated expenses due to higher compensation and exposure to geopolitical risk, given its global presence, will likely hurt Jefferies’ financials in the near term.
Jefferies Financial Group Inc. Price, Consensus and EPS Surprise
JPMorgan (JPM - Free Report) is scheduled to report third-quarter 2025 results on Oct. 14.
Over the past seven days, the Zacks Consensus Estimate for JPMorgan’s quarterly earnings has been revised marginally upward to $4.79. The current estimated figure indicates 9.6% growth from the prior-year quarter.
Bank of America (BAC - Free Report) is slated to announce third-quarter 2025 results on Oct. 15.
Over the past seven days, the Zacks Consensus Estimate for BAC’s quarterly earnings has been revised 1.1% lower to 93 cents. This implies a 14.8% rise from the prior-year quarter.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
JEF Stock Falls 3.6% Since Q3 Earnings Beat, IB Income Solid
Key Takeaways
Shares of Jefferies Financial Group (JEF - Free Report) have declined 3.6% since the announcement of its quarterly results on Sept. 29. Its third-quarter fiscal 2025 (ended Aug. 31) adjusted earnings of $1.05 per share handily surpassed the Zacks Consensus Estimate of 79 cents. The bottom line compared favorably with the prior-year quarter’s earnings of 78 cents per share.
Results were aided by strong performance in higher capital markets revenues, solid performances in the investment banking (IB) and asset management businesses. However, higher expenses remain a spoilsport.
Net income attributable to common shareholders (GAAP basis) was $224 million, up from $167.1 million in the prior-year quarter.
Jefferies’ Revenues Rise, Expenses Increase
Quarterly net revenues were $2.05 billion, up 21.6% year over year. The top line surpassed the Zacks Consensus Estimate of $1.89 billion.
Total non-interest expenses were $1.72 billion, up 19.9% from the prior-year quarter. The rise was due to an increase in almost all cost components except the cost of sales.
As of Aug. 31, 2025, book value per common share was $50.60, up from $48.89 as of Aug. 31, 2024. Furthermore, the adjusted tangible book value per fully diluted share increased from $31.87 to $33.38.
JEF’s Quarterly Segment Performance
Investment Banking and Capital Markets: Net revenues were $1.86 billion, rising 14.7% from the prior-year quarter. The growth was driven by higher advisory revenues, equity and debt underwriting alongside robust equity and fixed income performance.
Asset Management: Net revenues were $176.9 million, a significant jump from $59 million in 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 Nov. 26, 2025, to shareholders as of Nov. 17.
Our View on JEF
A robust trading and asset management business, improved IB operations and strategic joint ventures and partnerships will offer support to some extent. However, elevated expenses due to higher compensation and exposure to geopolitical risk, given its global presence, will likely hurt Jefferies’ financials 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 sports a Zacks Rank #1 (Strong Buy).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings Dates of JEF’s Peers
JPMorgan (JPM - Free Report) is scheduled to report third-quarter 2025 results on Oct. 14.
Over the past seven days, the Zacks Consensus Estimate for JPMorgan’s quarterly earnings has been revised marginally upward to $4.79. The current estimated figure indicates 9.6% growth from the prior-year quarter.
Bank of America (BAC - Free Report) is slated to announce third-quarter 2025 results on Oct. 15.
Over the past seven days, the Zacks Consensus Estimate for BAC’s quarterly earnings has been revised 1.1% lower to 93 cents. This implies a 14.8% rise from the prior-year quarter.