Jefferies misses revenue estimates in Q2 despite advisory, equities strength

Jefferies Financial

Yesterday 21:35

Overview
U.S. investment bank's preliminary Q2 revenue missed analyst expectations, with record advisory and equities net revenues
Net income for Q2 rose yr/yr; only two analyst estimates provided
Company repurchased 4 mln shares for $197 mln and increased buyback authorization to $250 mln

Outlook
Jefferies expects to build further on current momentum in coming periods
Company says it is optimistic about H2 2026 due to strong backlog and new business bookings
Company targets closing Hildene investment in Q3 2026, expects immediate accretion to results

Result Drivers
INVESTMENT BANKING GAINS - Co said record investment banking net revenues were driven by market share gains and a growing addressable market in advisory and equity underwriting
EQUITIES TRADING - Record equities net revenues attributed to higher global trading volumes, market share gains in cash and electronic trading, and growth in prime services
ASSET MANAGEMENT WEAKNESS - Asset management fees and investment return declined due to weaker performance across several fund strategies and reduced capital allocation

Company press release: ID:nBw9SdVWGa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$2.21 bln
$2.3 bln (4 Analysts)
Q2 Net Income
 
$226.23 mln
$306.37 mln (2 Analysts)
Q2 Pretax Profit
 
$315.55 mln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the investment banking & brokerage services peer group is "buy"
Wall Street's median 12-month price target for Jefferies Financial Group Inc is $66.00, about 9.1% above its June 23 closing price of $60.52
The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 10 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)