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.
Why Is Jefferies (JEF) Up 13.4% Since Last Earnings Report?
Read MoreHide Full Article
It has been about a month since the last earnings report for Jefferies (JEF - Free Report) . Shares have added about 13.4% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Jefferies due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Jefferies' Q1 Earnings Meet Estimates, Revenues Up on Solid IB Performance
Jefferies’ first-quarter fiscal 2026 (ended Feb. 28) adjusted earnings per share from continuing operations of 89 cents were in line with the Zacks Consensus Estimate. The bottom line jumped 45.9% year over year.
Results were aided by record Investment Banking revenues, strength in Equities and improved Asset Management investment returns. However, lower Fixed Income results, a goodwill write-down associated with Tessellis and losses tied to Market Financial Solutions and First Brands acted as headwinds.
Results included certain non-recurring charges. After considering these, net earnings attributable to common shareholders (GAAP) increased 21.8% to $155.7 million.
Revenues Rise, Expenses Increase
Quarterly net revenues were $2.02 billion, up from $1.59 billion in the prior-year quarter. The top line marginally beat the Zacks Consensus Estimate of $2.01 billion.
Total quarterly non-interest expenses were $1.80 billion, up from $1.44 billion in the year-ago quarter. Higher compensation and benefits expenses, brokerage and clearing fees, technology and communications expenses, and a write-down associated with Tessellis were the main reasons behind the increase.
As of Feb. 28, 2026, book value per common share was $51.91, up from $49.48 as of Feb. 28, 2025. Furthermore, adjusted tangible book value per fully diluted share increased from $32.57 to $34.24.
Quarterly Segment Performance
Investment Banking and Capital Markets: Net revenues were $1.80 billion, rising 28.4% from the prior-year quarter. Investment Banking net revenues were $1.02 billion, up from $700.7 million, driven by higher advisory and equity underwriting revenues, while debt underwriting remained solid but was lower year over year. Capital Markets net revenues were $778.8 million, up from $698.3 million, as Equities net revenues rose 36.5%, partially offset by a decline in Fixed Income net revenues.
Asset Management: Net revenues were $220.3 million, up from $191.7 million in the year-ago quarter. Asset management fees and revenues declined year over year, but investment return soared significantly, driven by improved performance across several fund strategies, particularly those with a long equity bias. Results also included a final $10 million pre-tax loss that fully wrote off Jefferies’ direct exposure to First Brands.
Balance Sheet Solid
As of Feb. 28, 2026, total assets were $74.38 billion, down from $76.01 billion as of Nov. 30, 2025, while total shareholders’ equity was $10.61 billion, up modestly from $10.58 billion.
The leverage ratio was 7.0 compared with 6.8 in the prior-year quarter, and the tangible gross leverage ratio was 8.4 compared with 8.3.
Return on adjusted tangible shareholders’ equity was 10.9%, up from 8.0% in the prior-year quarter.
Share Repurchase Update
In the reported quarter, Jefferies repurchased 3.0 million common shares for $174 million, at an average price of $58.18 per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -11.77% due to these changes.
VGM Scores
Currently, Jefferies has a poor Growth Score of F, a score with the same score on the momentum front. However, the stock has a score of C on the value side, putting it in the middle 20% 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
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Jefferies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Jefferies belongs to the Zacks Financial - Miscellaneous Services industry. Another stock from the same industry, Abacus Global Management, Inc. (ABX - Free Report) , has gained 4.3% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.
Abacus Global Management, Inc. reported revenues of $71.9 million in the last reported quarter, representing a year-over-year change of +116.5%. EPS of $0.23 for the same period compares with $0.16 a year ago.
Abacus Global Management, Inc. is expected to post earnings of $0.21 per share for the current quarter, representing a year-over-year change of +16.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.4%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Abacus Global Management, Inc.. Also, the stock has a VGM Score of D.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Why Is Jefferies (JEF) Up 13.4% Since Last Earnings Report?
It has been about a month since the last earnings report for Jefferies (JEF - Free Report) . Shares have added about 13.4% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Jefferies due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Jefferies' Q1 Earnings Meet Estimates, Revenues Up on Solid IB Performance
Jefferies’ first-quarter fiscal 2026 (ended Feb. 28) adjusted earnings per share from continuing operations of 89 cents were in line with the Zacks Consensus Estimate. The bottom line jumped 45.9% year over year.
Results were aided by record Investment Banking revenues, strength in Equities and improved Asset Management investment returns. However, lower Fixed Income results, a goodwill write-down associated with Tessellis and losses tied to Market Financial Solutions and First Brands acted as headwinds.
Results included certain non-recurring charges. After considering these, net earnings attributable to common shareholders (GAAP) increased 21.8% to $155.7 million.
Revenues Rise, Expenses Increase
Quarterly net revenues were $2.02 billion, up from $1.59 billion in the prior-year quarter. The top line marginally beat the Zacks Consensus Estimate of $2.01 billion.
Total quarterly non-interest expenses were $1.80 billion, up from $1.44 billion in the year-ago quarter. Higher compensation and benefits expenses, brokerage and clearing fees, technology and communications expenses, and a write-down associated with Tessellis were the main reasons behind the increase.
As of Feb. 28, 2026, book value per common share was $51.91, up from $49.48 as of Feb. 28, 2025. Furthermore, adjusted tangible book value per fully diluted share increased from $32.57 to $34.24.
Quarterly Segment Performance
Investment Banking and Capital Markets: Net revenues were $1.80 billion, rising 28.4% from the prior-year quarter. Investment Banking net revenues were $1.02 billion, up from $700.7 million, driven by higher advisory and equity underwriting revenues, while debt underwriting remained solid but was lower year over year. Capital Markets net revenues were $778.8 million, up from $698.3 million, as Equities net revenues rose 36.5%, partially offset by a decline in Fixed Income net revenues.
Asset Management: Net revenues were $220.3 million, up from $191.7 million in the year-ago quarter. Asset management fees and revenues declined year over year, but investment return soared significantly, driven by improved performance across several fund strategies, particularly those with a long equity bias. Results also included a final $10 million pre-tax loss that fully wrote off Jefferies’ direct exposure to First Brands.
Balance Sheet Solid
As of Feb. 28, 2026, total assets were $74.38 billion, down from $76.01 billion as of Nov. 30, 2025, while total shareholders’ equity was $10.61 billion, up modestly from $10.58 billion.
The leverage ratio was 7.0 compared with 6.8 in the prior-year quarter, and the tangible gross leverage ratio was 8.4 compared with 8.3.
Return on adjusted tangible shareholders’ equity was 10.9%, up from 8.0% in the prior-year quarter.
Share Repurchase Update
In the reported quarter, Jefferies repurchased 3.0 million common shares for $174 million, at an average price of $58.18 per share.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -11.77% due to these changes.
VGM Scores
Currently, Jefferies has a poor Growth Score of F, a score with the same score on the momentum front. However, the stock has a score of C on the value side, putting it in the middle 20% 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
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Jefferies has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Jefferies belongs to the Zacks Financial - Miscellaneous Services industry. Another stock from the same industry, Abacus Global Management, Inc. (ABX - Free Report) , has gained 4.3% over the past month. More than a month has passed since the company reported results for the quarter ended December 2025.
Abacus Global Management, Inc. reported revenues of $71.9 million in the last reported quarter, representing a year-over-year change of +116.5%. EPS of $0.23 for the same period compares with $0.16 a year ago.
Abacus Global Management, Inc. is expected to post earnings of $0.21 per share for the current quarter, representing a year-over-year change of +16.7%. Over the last 30 days, the Zacks Consensus Estimate has changed -1.4%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Abacus Global Management, Inc.. Also, the stock has a VGM Score of D.