Nov 30, 2023

Jefferies Q4 2023 Earnings Report

Jefferies' Q4 2023 financial results were announced, with a net income of $66 million and revenue of $1.20 billion.

Key Takeaways

Jefferies Financial Group reported Q4 2023 financial results, including net earnings attributable to common shareholders of $66 million, or $0.29 per diluted common share, and net revenues of $1.20 billion. The company's Board of Directors has increased the share buyback authorization back to a total of $250 million.

Net earnings attributable to common shareholders were $66 million, or $0.29 per diluted common share.

Annualized return on adjusted tangible equity was 3.8%.

Net revenues totaled $1.20 billion, with Investment Banking contributing $577 million, Capital Markets $481 million, and Asset Management $155 million.

The Board of Directors increased the share buyback authorization back to a total of $250 million.

Total Revenue
$1.2B
Previous year: $1.44B
-16.8%
EPS
$0.3
Previous year: $0.57
-47.4%
ROATE
3.8%
Gross Profit
$1.76B
Previous year: $543M
+223.6%
Cash and Equivalents
$8.53B
Previous year: $9.7B
-12.1%
Free Cash Flow
$35.4M
Previous year: $265M
-86.7%
Total Assets
$57.9B
Previous year: $51.1B
+13.4%

Jefferies

Jefferies

Forward Guidance

Jefferies anticipates improved results and will continue to return capital to shareholders through dividends and share repurchases. The firm is well-positioned for future growth, driven by lower-risk Investment Banking revenue and a diversified sales, trading, and research platform.

Positive Outlook

  • Expectation of better results over the next several years.
  • Commitment to return capital to shareholders through cash dividends and share repurchases.
  • Enhanced market position, broader geographic reach, a credit rating upgrade, enhanced human capital, and an even stronger brand achieved in 2023.
  • Expanded global talent pool in Investment Banking, Equities, Fixed Income, Research, and Alternative Asset Management.
  • Firm better positioned than ever before, with a path to deliver excellent long-term total returns to shareholders.

Challenges Ahead

  • Transition year in the economy and capital markets posed challenges.
  • Geopolitical turmoil created sadness and uncertainty.
  • Pain of transition felt primarily in Investment Banking due to curtailed new capital markets issuance and dampened merger and acquisition activity.
  • Uncertainty, turmoil, and volatility impacted performance.
  • Results pale in comparison to the period of 2020-21, which represented the height of free money and strong stimulus.