Jefferies Financial Group Q1 EPS Misses by 17c, Investment Banking Up 45%
Jefferies posted Q1 net income of $155.7 million, up 22%, but EPS of $0.70 trailed the $0.87 consensus after a $17 million loss from credit blowups. Investment-banking revenue surged 45% and equities trading revenue rose 37%, offsetting a 24% drop in fixed-income trading and a $36 million writedown.
1. First-Quarter Earnings Fell Short of Estimates
Jefferies Financial Group reported Q1 net income of $155.7 million, up 22% year-over-year, but EPS of $0.70 missed the $0.87 consensus following a $17 million credit-related loss tied to two recent blowups.
2. Investment Banking and Trading Drive Revenue Gains
Investment-banking revenue jumped 45% on increased deal volumes across several sectors, while equities trading revenue climbed 37% to $558.5 million, offsetting a 24% decline in fixed-income trading.
3. Merchant-Banking and Asset-Management Write-Downs
The firm recorded a $36 million writedown on the sale of telecom unit Tessellis SpA and booked a $40 million pretax loss from First Brands Group exposure, fully eliminating that position.