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JEF Stock Falls 3.3% Despite Y/Y Increase in Q4 Earnings & Revenues

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Key Takeaways

  • JEF's Q4 adjusted EPS rose 5.5% to $0.96, surpassing the consensus estimate of $0.83.
  • Net revenues climbed 5.6% Y/Y to $2.07B, driven by gains in Investment Banking and Equities.
  • Quarterly expenses jumped to $1.82B due to rising compensation, tech and business development costs.

Jefferies Financial Group’s (JEF - Free Report) fourth-quarter fiscal 2025 (ended Nov. 30) adjusted earnings from continuing operations of 96 cents per share grew 5.5% year over year. The Zacks Consensus Estimate for earnings was 83 cents.

Results were aided by strong performance and sustained momentum in Investment Banking and Equities, partially offset by lower net revenues in Fixed Income and Asset Management. However, higher expenses remain a spoilsport. Shares of JEF lost 3% in after-hours trading. 

Results excluded the impact of the Point Bonita write-down. Considering this, net income attributable to common shareholders (GAAP basis) was $190.9 million, down from $205.7 million in the prior-year quarter.  

For fiscal 2025, adjusted earnings from continuing operations were $2.94, down from $2.96 in fiscal 2024 and surpassed the Zacks Consensus Estimate of $2.81. Net income attributable to common shareholders (GAAP basis) was $630.8 million, down from $669.3 million in the prior year.

Jefferies’ Revenues Rise, Expenses Increase

Quarterly net revenues were $2.07 billion, up from $1.96 billion in the prior-year quarter. The top line surpassed the Zacks Consensus Estimate of $1.93 billion.

For fiscal 2025, net revenues of $7.34 billion grew 4.4% from the prior year. The top line also beat the consensus estimate of $7.21 billion.

Total quarterly non-interest expenses were $1.82 billion, up from $1.65 billion in the year-ago quarter. The rise reflected higher compensation and benefits, and higher non-compensation expenses (including brokerage and clearing fees, technology and communications, and business development expenses). 

As of Nov. 30, 2025, book value per common share was $51.26, up from $49.42 as of Nov. 30, 2024. Furthermore, the adjusted tangible book value per fully diluted share increased from $32.36 to $33.69.

JEF’s Quarterly Segment Performance

Investment Banking and Capital Markets: Net revenues were $1.88 billion, rising 14.7% from the prior-year quarter. Investment banking net revenues were $1.19 billion, up from $986.8 million, driven by higher advisory revenues, equity underwriting and debt underwriting. Capital markets net revenues were $691.9 million, up from $651.7 million, as equities net revenues rose, partially offset by a decline in fixed income net revenues. 

Asset Management: Net revenues were $187.0 million, down from $314.8 million in the year-ago quarter. Asset management fees and revenues increased, which was more than offset by lower investment returns.

Our View on JEF

Jefferies’ quarterly performance reflected strength in the industry-wide capital markets business. While expense pressure was evident, management highlighted ongoing technology investments, market share gains and initiatives aimed at supporting long-term growth. 
 

Currently, Jefferies carries 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 2025 results on Jan. 13.

Over the past 30 days, the Zacks Consensus Estimate for JPMorgan’s quarterly earnings has been revised upward to $4.97. The current estimated figure indicates 3.3% growth from the prior-year quarter.

Bank of America (BAC - Free Report) is slated to announce fourth-quarter and full-year 2025 results on Jan. 14.

Over the past 30 days, the Zacks Consensus Estimate for BAC’s quarterly earnings has been revised lower to 96 cents. This implies a 17.1% rise from the prior-year quarter.


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