Jefferies Financial 2Q Revenue Declines Amid Challenging Environment

By Denny Jacob

Jefferies Financial Group reported sharply lower top- and bottom-line results, reflecting the challenging operating environment in the second quarter.
The holding company, which provides financial services, posted earnings of $12.4 million, or 5 cents a share, for the three months ended May 31, down 89% from $114 million, or 46 cents a share, a year earlier. Analysts polled by FactSet expected earnings of 27 cents a share.

Jefferies said its earnings included $72 million of pre-tax losses related to OpNet, a legacy merchant banking investment.
Revenue declined 22% to $1.04 billion from $1.34 billion. Analysts polled by FactSet expected $1.04 billion.
Investment banking net revenue declined 26% to $510 million from a year year, which the company attributed to subdued mergers and acquisitions activity.
“We believe our second-quarter results reflect a cyclically low period and a particularly challenging environment,” said Chief Executive Richard Handler. He also cited challenges in the quarter including the fallout from the regional banking crisis and tumultuous process of extending the U.S. debt ceiling, among other issues.
Write to Denny Jacob at [email protected]
Corrections & Amplifications
This item was corrected at 6:12 p.m. ET to show that snalysts polled by FactSet expected Jefferies Financial Group earnings of 27 cents a share and revenue of $1.04 billion, not 36 cents a share and $1.37 billion.
Analysts polled by FactSet expected Jefferies Financial Group earnings of 27 cents a share and revenue of $1.04 billion. “Jefferies Financial 2Q Revenue Declines Amid Challenging Environment,” at 4:36 p.m. ET, incorrectly stated the figures as 36 cents a share and $1.37 billion.