JEF Q4 Earnings & Revenues Beat as IB Business Rebounds, Expenses Up

Core Insights - Jefferies Financial Group reported adjusted earnings of $1.05 per share for Q4 fiscal 2024, exceeding the Zacks Consensus Estimate of 98 cents and significantly up from 30 cents in the prior-year quarter [1][2] - The company's net income attributable to common shareholders on a GAAP basis was $205.7 million, a substantial increase from $65.6 million in the same quarter last year [2] - For the full fiscal year 2024, adjusted earnings were $3.39 per share, surpassing the consensus estimate of $3.20 and growing from $1.30 in fiscal 2023 [3] Revenue and Expenses - Quarterly net revenues reached $1.96 billion, a 63.4% year-over-year increase, and also exceeded the Zacks Consensus Estimate of $1.84 billion [4] - For fiscal 2024, net revenues increased by 49.7% to $7.03 billion, surpassing the consensus estimate of $6.93 billion [4] - Total non-interest expenses rose to $1.65 billion, up 48.8% from the prior-year quarter, attributed to increases across nearly all cost components [4] Segment Performance - Investment Banking and Capital Markets generated net revenues of $1.64 billion, a 54.9% increase from the prior-year quarter, driven by strong advisory and underwriting performance [6] - Asset Management saw net revenues of $314.5 million, significantly up from $140.6 million in the year-ago quarter [6] Dividend Announcement - Jefferies declared a quarterly cash dividend of 40 cents per share, reflecting a 14.3% increase from the previous dividend payout, scheduled for payment on February 27, 2025 [7] Outlook - The company is expected to benefit from a solid trading business and a resurgence in investment banking, although elevated expenses may impact the bottom line in the near term [8]