NYSE$JEF

Jefferies Financial Group Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Jefferies' Q1 2024 financial performance reflected solid results across its businesses, with Investment Banking pipeline strengthening and Capital Markets delivering its third-best quarter ever.

Jefferies Financial Group reported net earnings attributable to common shareholders of $150 million, or $0.66 per diluted common share, for Q1 2024. Net revenues reached $1.74 billion, driven by strong performances in Investment Banking and Capital Markets. Adjusting for a loss associated with the Weiss Multi-Strategy Advisers, net earnings from continuing operations were $196 million, or $0.87 per diluted common share.

  • Net earnings attributable to common shareholders were $150 million, or $0.66 per diluted common share.
  • Net revenues totaled $1.74 billion, with Investment Banking contributing $740 million and Capital Markets $712 million.
  • Adjusting for the Weiss loss, net earnings from continuing operations were $196 million, or $0.87 per diluted common share.
  • Investment Banking net revenues increased by 31.4% year-over-year, driven by improved mergers and acquisitions and equity underwriting activity.

Headline financials

Total Revenue

$1.74B

Previous: $1.78B-2.4%
EPS (adj)

$0.87

Previous: $0.55+58.2%
ROATE (Annualized)

9.8%

No prior period
Capital Expenditures

-$96.2M

Previous: -$25.2M-282.6%
Free Cash Flow

$60.2M

Previous: $104M-42.3%
Net Income

$156M

Previous: $129M+20.9%
Operating Income

$220M

Previous: $1.63B-86.5%
Gross Profit

$2.52B

Previous: $1.78B+41.5%

Revenue & EPS history

Jefferies · Revenue · Quarterly

$1.74B

Q1 2024-2.4%vs Q1 2023
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Jefferies · $1.12B total across 4 segments · Q3 2023

  • Total Capital Markets
    $524M+15.8%
  • Advisory
    $335M-31.1%
  • Equity Underwriting
    $154M+2.1%
  • Debt Underwriting
    $111M+43.9%

Forward guidance

Jefferies anticipates continued Investment Banking momentum and sustained market share gains across Advisory, Equity underwriting, and Leveraged finance. The company expects its alliance with SMBC to gain further traction, expanding cooperation into additional regions and areas of mutual opportunity.

Tailwinds

  • Investment Banking pipeline continues to strengthen.
  • Strong results in Capital Markets have continued into the current quarter.
  • Recent significant hires are expected to increasingly contribute to results.
  • Expect Investment Banking momentum to continue.
  • Alliance with SMBC continues to gain traction and is additive to our business model and prospects.

Headwinds

  • Disappointed in the outcome at Weiss Multi-Strategy.
  • Loss is a result of support we provided the platform that was incremental to our separately managed account.
  • Amounts pertaining to February 29, 2024 represent a preliminary estimate as of the date of this earnings release and may be revised upon filing our Quarterly Report on Form 10-Q with the Securities and Exchange Commission (“SEC”).
  • Forward-looking statements are based on current views and include statements about our future and statements that are not historical facts.
  • Past performance may not be indicative of future results.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+0.2%

Avg return

Earnings day

+1.3%

Avg return

5 days after

+2.5%

Avg return

30 days after

53%

38 / 72 earnings

Positive

+10.1%

Q2 2019

Best reaction

-10.3%

Q3 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026
Q1 2026+2.0%+4.7%
Q4 2025-5.5%-3.9%-8.9%
Q3 2025-1.7%-6.3%-20.4%
Q2 2025+0.3%+1.7%+9.9%
Q1 2025-9.9%-11.2%-22.4%
Q3 2024-2.1%-1.5%+2.5%
Q2 2024+6.3%+8.5%+23.7%
Q1 2024-2.5%-3.7%-3.7%
Q4 2023-0.7%-0.7%-0.2%
Q3 2023+1.8%-1.2%-12.6%
Q2 2023+4.9%+5.2%+17.2%
Q1 2023+3.3%+5.3%+7.5%
Q4 2022+4.6%+8.1%+10.1%
Q3 2022+0.1%+5.5%+18.1%
Q2 2022+1.5%+0.4%+14.4%
Q1 2022+3.1%+2.9%-2.2%
Q4 2021-8.1%-9.2%-9.3%
Q3 2021+0.5%+1.6%+14.0%
Q2 2021+6.2%+4.6%+2.2%
Q1 2021-4.1%-8.0%-1.2%
Q4 2020+1.3%+7.3%+0.1%
Q3 2020+4.8%+6.2%+17.0%
Q2 2020+7.4%+7.6%+16.0%
Q1 2020+4.8%-0.1%-11.0%
Q4 2019+3.8%+3.4%+9.3%
Q3 2019-3.6%-1.4%+2.6%
Q2 2019+10.1%+10.4%+3.6%
Q1 2019+0.5%+3.6%+9.2%
Q4 2018+3.1%+5.2%+7.2%
Q3 2018+1.5%+4.8%+3.6%
Q2 2018+8.4%+6.2%+2.7%
Q1 2018-1.7%-1.6%-5.0%
Q4 2017-0.0%-1.7%-12.5%
Q3 2017+1.3%-0.6%+0.9%
Q2 2017-2.9%-2.9%-9.7%
Q1 2017-2.9%-1.8%-5.9%
Q4 2016+3.6%-2.1%-1.8%
Q3 2016-2.6%+0.4%+21.4%
Q2 2016+4.8%+5.7%+6.9%
Q1 2016+0.7%
Q4 2015+0.4%
Q3 2015-2.5%
Q2 2015-1.9%
Q1 2015+2.1%
Q4 2014-0.3%
Q3 2014+1.5%
Q2 2014-1.2%
Q1 2014-1.0%
Q4 2013-2.1%
Q3 2013-0.7%
Q2 2013-1.0%
Q1 2013-1.6%
Q4 2012-3.2%
Q3 2012-4.4%
Q2 2012-3.1%
Q1 2012-2.3%
Q4 2011+0.5%
Q3 2011-10.3%
Q2 2011-6.5%
Q1 2011+1.8%
Q4 2010+3.1%
Q3 2010+0.9%
Q2 2010-2.3%
Q1 2009-4.8%
Q1 2010+1.3%
Q4 2007+4.5%
Q4 2009+4.5%
Q3 2008+0.9%
Q3 2009+0.9%
Q2 2008-0.2%
Q4 2008-0.2%
Q2 2009-0.2%

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