NYSE$JEF

Jefferies Financial Group Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Jefferies reported strong performance and continued momentum in Investment Banking, with particularly strong performance in Advisory.

Jefferies Financial Group reported third quarter net revenues of $1.68 billion, reflecting strong performance and continued momentum in Investment Banking, with particularly strong performance in Advisory. Net earnings attributable to common shareholders were $167 million, or $0.75 per diluted common share.

  • Net earnings attributable to common shareholders of $167 million, or $0.75 per diluted common share.
  • Investment Banking net revenues of $949 million were up 18.2% from the prior quarter and 47.3% from the same quarter last year, driven by an increase in advisory activity.
  • Capital Markets net revenues of $671 million were down only 3.0% versus an exceptionally strong prior quarter but were up 28.1% from the same quarter last year.
  • The company closed on the sale of OpNet during the quarter.

Headline financials

Total Revenue

$2.6B

Previous: $2.04B+27.2%
EPS

$0.75

Previous: $0.23+226.1%
Book Value per Share

$48.89

No prior period
Adj. Tangible BV per Share

$31.87

No prior period
ROATE (Annualized)

10.3%

Previous: 2.9%+255.2%
Capital Expenditures

-$181M

Previous: -$80.2M-125.2%
Free Cash Flow

$385K

Previous: -$22.5M+101.7%
Net Income

$181M

Previous: $57.7M+213.7%
Operating Income

$997M

Previous: $1.84B-45.8%
Gross Profit

$2.56B

Previous: $2.04B+25.4%
Cash & Equivalents

$10.6B

Previous: $8.82B+19.9%
Total Assets

$63.3B

Previous: $56B+12.9%

Revenue & EPS history

Jefferies · Revenue · Quarterly

$2.6B

Q3 2024+27.2%vs Q3 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 feels they have the right global team that is positioned exceptionally well to serve their clients, especially in a backdrop of declining interest rates and increasing activity driven by pent up demand for capital markets and advisory deal flow. After heavy recent investment in human capital during the slowdown, now is the time for Jefferies to focus on executing for their clients and enhancing their overall market position around the world.

Tailwinds

  • Declining interest rates
  • Increasing activity driven by pent up demand for capital markets
  • Increasing activity driven by pent up demand for advisory deal flow
  • Heavy recent investment in human capital during the slowdown
  • Focus on executing for clients and enhancing overall market position around the world

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 Q3 2024

Historical avgQ3 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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