Why Is Jefferies (JEF) Down 7.4% Since Last Earnings Report?

Core Viewpoint - Jefferies has experienced a decline of approximately 7.4% in share price since the last earnings report, underperforming the S&P 500, raising questions about future performance leading up to the next earnings release [1] Financial Performance - Jefferies reported adjusted earnings from continuing operations of 96 cents per share for Q4 fiscal 2025, reflecting a year-over-year increase of 5.5%, surpassing the Zacks Consensus Estimate of 83 cents [2] - The net income attributable to common shareholders on a GAAP basis was $190.9 million, down from $205.7 million in the prior-year quarter [3] - For fiscal 2025, adjusted earnings from continuing operations totaled $2.94, slightly down from $2.96 in fiscal 2024, but exceeded the Zacks Consensus Estimate of $2.81 [3] Revenue and Expenses - Quarterly net revenues reached $2.07 billion, an increase from $1.96 billion in the prior-year quarter, and surpassed the Zacks Consensus Estimate of $1.93 billion [4] - Total non-interest expenses for the quarter were $1.82 billion, up from $1.65 billion in the year-ago quarter, driven by higher compensation and benefits as well as increased non-compensation expenses [5] Segment Performance - In Investment Banking and Capital Markets, net revenues were $1.88 billion, a 14.7% increase from the prior-year quarter, with investment banking net revenues rising to $1.19 billion [6] - Asset Management net revenues decreased to $187.0 million from $314.8 million in the year-ago quarter, despite an increase in asset management fees and revenues [7] Market Estimates and Outlook - There has been a 9.52% upward shift in consensus estimates over the past month, indicating positive sentiment among investors [8] - Jefferies holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [11]