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Feb 29, 2024
Jefferies Q1 2024 Earnings Report
Jefferies' Q1 2024 financial performance reflected solid results across its businesses, with Investment Banking pipeline strengthening and Capital Markets delivering its third-best quarter ever.
Key Takeaways
Jefferies Financial Group reported net earnings attributable to common shareholders of $150 million, or $0.66 per diluted common share, for Q1 2024. Net revenues reached $1.74 billion, driven by strong performances in Investment Banking and Capital Markets. Adjusting for a loss associated with the Weiss Multi-Strategy Advisers, net earnings from continuing operations were $196 million, or $0.87 per diluted common share.
Net earnings attributable to common shareholders were $150 million, or $0.66 per diluted common share.
Net revenues totaled $1.74 billion, with Investment Banking contributing $740 million and Capital Markets $712 million.
Adjusting for the Weiss loss, net earnings from continuing operations were $196 million, or $0.87 per diluted common share.
Investment Banking net revenues increased by 31.4% year-over-year, driven by improved mergers and acquisitions and equity underwriting activity.
Jefferies
Jefferies
Jefferies Revenue by Segment
Revenue by Segment
Advisory Revenue
CapyFin.comEquity Underwriting Revenue
CapyFin.comDebt Underwriting Revenue
CapyFin.comOther Investment Banking Revenue
CapyFin.comTotal Investment Banking Revenue
CapyFin.comTotal Capital Markets Revenue
CapyFin.com Forward Guidance
Jefferies anticipates continued Investment Banking momentum and sustained market share gains across Advisory, Equity underwriting, and Leveraged finance. The company expects its alliance with SMBC to gain further traction, expanding cooperation into additional regions and areas of mutual opportunity.
Positive Outlook
- Investment Banking pipeline continues to strengthen.
- Strong results in Capital Markets have continued into the current quarter.
- Recent significant hires are expected to increasingly contribute to results.
- Expect Investment Banking momentum to continue.
- Alliance with SMBC continues to gain traction and is additive to our business model and prospects.
Challenges Ahead
- Disappointed in the outcome at Weiss Multi-Strategy.
- Loss is a result of support we provided the platform that was incremental to our separately managed account.
- Amounts pertaining to February 29, 2024 represent a preliminary estimate as of the date of this earnings release and may be revised upon filing our Quarterly Report on Form 10-Q with the Securities and Exchange Commission (“SEC”).
- Forward-looking statements are based on current views and include statements about our future and statements that are not historical facts.
- Past performance may not be indicative of future results.