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Jefferies (NYSE:JEF) stock gapped up 7.6% in Thursday afternoon trading after delivering fiscal Q2 earnings that surpassed the average analyst estimate as positive momentum continued to build across its investment banking businesses.
Q2 GAAP EPS of $0.64, topping the $0.63 Wall Street consensus, fell from $0.87 in the previous quarter and jumped from $0.05 a year before.
Net revenues by segment:
- Investment banking net revenues of $803.2M, up from $739.7M in Q1 and $503.9M in the year-earlier quarter.
- Capital Markets net revenues of $691.3M retreated from $711.6M in the prior three-month period and rose from $557.1M in Q2 2023.
- Asset Management net revenues of $156.5M vs. $273.4M in Q1 and -$30.9M in Q2 2023.
Noninterest expenses slipped to $1.43B from $1.52B in the prior quarter and advanced from $1.02B a year ago.
At May 31, 2024, Jefferies (JEF) had 212.1M common shares outstanding. Book value was $46.57 per common share.
“We expect margins to continue to improve as we realize the full potential of investments we have made in our Investment Banking platform and the market for investment banking activity continues to strengthen,” said CEO Richard Handler and President Brian Friedman.
“We believe margins also will benefit over time from maintaining a strong discipline around expenses and leveraging investments made in technology that drive innovation, increase productivity, and strengthen our offerings and capabilities,” they added.