NYSE$JEF

Jefferies Financial Group Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Jefferies' financial results for Q2 2023 were announced, reflecting a cyclically low period with net earnings of $12 million and total net revenues of $1.04 billion.

Jefferies Financial Group reported Q2 2023 financial results, with net earnings attributable to common shareholders of $12 million, or $0.05 per diluted share, including $72 million of pre-tax losses related to OpNet. Total net revenues were $1.04 billion, which included $72 million of pre-tax losses related to OpNet. Investment Banking net revenues totaled $510 million, while Capital Markets net revenues were $543 million. The company repurchased 2.2 million shares of common stock for $67 million.

  • Net earnings attributable to common shareholders were $12 million, or $0.05 per diluted share, including $72 million of pre-tax losses related to OpNet.
  • Total net revenues reached $1.04 billion, including a $72 million pre-tax loss related to OpNet.
  • Investment Banking net revenues amounted to $510 million.
  • Capital Markets net revenues totaled $543 million.

Headline financials

Total Revenue

$1.65B

Previous: $1.62B+2.0%
EPS (adj)

$0.06

Previous: $0.45-86.7%
ROATE (Annualized)

0.7%

No prior period
Capital Expenditures

-$50.2M

Previous: $57.1M-187.9%
Free Cash Flow

-$41.5M

Previous: $117M-135.5%
Net Income

$8.68M

Previous: $117M-92.6%
Operating Income

$1.47B

Previous: $1.05B+39.6%
Gross Profit

$1.65B

Previous: $1.49B+10.8%
Cash & Equivalents

$8B

Previous: $8.52B-6.1%
Total Assets

$53.7B

Previous: $57.2B-6.1%
Stock-Based Comp

$10.5M

Previous: $13.3M-20.8%

Revenue & EPS history

Jefferies · Revenue · Quarterly

$1.65B

Q2 2023+2%vs Q2 2022
Beat estimate in 14 of 15 quarters(93%)
ActualEstimate

Revenue by segment

Jefferies · $1.05B total across 5 segments · Q2 2023

  • Total Capital Markets
    $543M+30.4%
  • Advisory
    $254M-31.6%
  • Equity Underwriting
    $148M
  • Debt Underwriting
    $89.9M
  • Other Inv. Banking
    $17.3M-80.3%

Forward guidance

Jefferies is increasingly optimistic about a return to a more normal environment, with green shoots appearing in June. They believe the second half of the year could be more productive, although potential adverse developments always exist.

Tailwinds

  • More forward-looking attitude from investor base.
  • Stronger willingness from corporate clients to engage in capital formation and other major strategic initiatives.
  • Several major impediments are behind them.
  • Approaching a consensus and more stable interest rate environment.
  • Changes and developments at some primary competitors are creating further market opportunity for the Jefferies platform, allowing them to recruit talent.

Headwinds

  • Potential for further adverse developments.
  • Challenges in the operating environment during the second quarter included the fallout from the regional banking crisis.
  • The government-supported forced merger of Credit Suisse and UBS.
  • The tumultuous process of extending the U.S. debt ceiling.
  • Uncharacteristically low volumes of capital markets issuances and mergers and acquisition activity.

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 Q2 2023

Historical avgQ2 2023

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro