JEF Q2 Earnings Meet Estimates on Solid Capital Markets, Stock Down

Core Viewpoint - Jefferies Financial Group's second-quarter fiscal 2025 adjusted earnings of 43 cents per share matched estimates but declined from 67 cents per share in the prior-year quarter, indicating a challenging financial environment [1][9]. Financial Performance - Net income attributable to common shareholders was $88 million, down from $145.7 million in the prior-year quarter, reflecting a significant decrease in profitability [2]. - Quarterly net revenues were $1.63 billion, a decrease of 1.3% year over year, although it surpassed the Zacks Consensus Estimate of $1.56 billion [3]. - Total non-interest expenses rose to $1.50 billion, up 5% from the prior-year quarter, driven by increases in almost all cost components except for compensation and benefits and underwriting costs [3]. Segment Performance - In the Investment Banking and Capital Markets segment, net revenues were $1.47 billion, falling 1.6% from the prior-year quarter due to lower equity and debt underwriting and fixed-income performance, partially offset by strong performance in Equities [5]. - The Asset Management segment reported net revenues of $154.6 million, down 1.2% from the year-ago quarter [5]. Shareholder Returns - Jefferies announced a quarterly cash dividend of 40 cents per share, to be paid on August 29, 2025, to shareholders as of August 18 [6]. Book Value - As of May 31, 2025, the book value per common share was $49.96, an increase from $46.57 as of May 31, 2024, while the adjusted tangible book value per fully diluted share rose to $32.84 from $31.27 [4].