Jefferies(US:JEF)2024-03-27 20:17Earnings and Profitability - Net earnings attributable to common shareholders from continuing operations were $157 million, or $0.69 per diluted common share, adjusted for a pre-tax loss of $55 million associated with the investment in Weiss Multi-Strategy Advisers, resulting in adjusted net earnings of $196 million, or $0.87 per diluted common share[2] - Annualized return on adjusted tangible total equity from continuing operations was 9.8%, and 12.0% when adjusted for the impact of the Weiss loss[2] - Adjusted earnings per diluted common share from continuing operations, excluding Weiss losses, were $0.87, compared to GAAP earnings per diluted common share of $0.66[8] - Net earnings attributable to common shareholders were $150 million, or $0.66 per diluted common share, with $164 million, or $0.69 per diluted common share, from continuing operations[17] - Annualized return on adjusted tangible equity was 9.4%, with adjusted net earnings to total shareholders from continuing operations excluding Weiss losses at $857 million[25] Revenue Performance - Net revenues for the quarter were $1.74 billion, with Investment Banking net revenues of $740 million, Capital Markets net revenues of $712 million, and Asset Management net revenues of $288 million (before allocated net interest)[2] - Investment Banking net revenues increased by 28.2% from the prior quarter and 31.4% from the same quarter last year, driven by improved mergers and acquisitions and equity underwriting activity[10] - Capital Markets net revenues increased by 47.9% from the prior quarter and 8.8% from the same quarter last year, marking the third-best Capital Markets quarter ever[2][10] - Net revenues from Asset Management were $273.4 million, a 299% increase from the same quarter last year, driven by strong performance in funds and accounts managed by the company[11] - Asset Management net revenues increased to $273 million, significantly higher than the prior year period due to strong performance across multiple investment strategies and funds, and the consolidation of Stratos and Tessellis[16] - Investment Banking net revenues reached $740 million, driven by improved performance in advisory, equity, and debt underwriting, with advisory net revenues benefiting from increased mergers and acquisitions volume[19] - Capital Markets net revenues were $712 million, primarily due to stronger performance in Equities, while Fixed Income net revenues remained consistent with the prior year[19] - Total Investment Banking and Capital Markets net revenues were $1,451 million, with Asset Management net revenues at $273 million[20] Shareholder Equity and Book Value - The company had 212.0 million common shares outstanding and 253.5 million shares outstanding on a fully diluted basis as of February 29, 2024, with a book value per common share of $46.13 and tangible book value per fully diluted share of $30.89[2] - Adjusted tangible book value was $7.83 billion, and fully diluted shares outstanding were 253.5 million as of February 29, 2024[13] - Book value per common share was $46.13, and tangible book value per fully diluted share was $30.89 at February 29, 2024[24] Share Repurchases and Dividends - The company repurchased 1.1 million common shares for $43 million, at an average price of $40.63 per share[17] - The company declared a quarterly cash dividend of $0.30 per common share, payable on May 30, 2024[23] Total Assets and Equity - Total assets increased to $60,933 million, with cash and cash equivalents at $7,616 million and total equity at $9,867 million[21] Market and Strategic Outlook - The company expects continued momentum in Investment Banking and Capital Markets, with market share gains in Advisory, Equity underwriting, and Leveraged finance, supported by recent significant hires and the alliance with SMBC[10]