Jefferies' record equities haul offsets asset management slump
JEF•Jefferies beat third-quarter profit estimates, reporting $1.08 per share versus analysts' $1 estimate, as record equities trading helped offset a decline in asset management revenue to $34 million from $84 million a year earlier.
1. Trading lifts results
Jefferies' investment banking revenue rose 17% to $1.33 billion, supported by record advisory performance and strong equity underwriting. Revenue from its capital markets business, which includes trading desks, increased 11% to $802 million, driven by record equities trading.
2. Asset management declines
Fees and investment return revenue in asset management fell to $34 million from $84 million a year earlier, reflecting weaker performance across several fund strategies, including Point Bonita, which had exposure to bankrupt auto-parts supplier First Brands.
3. Company outlook
Profit attributable to Jefferies shareholders was $260.6 million, or $1.08 per share, for the three months ended August 31. CEO Richard Handler and President Brian Friedman said they were optimistic about the balance of 2026 and momentum heading into 2027, citing the breadth and strength of the backlog and new business activity.
