U.S. investment bank Jefferies Financial Group (JEF) has reported financial results that missed Wall Street estimates on the top and bottom lines.
The New York-based firm announced fiscal first quarter earnings per share (EPS) of $0.57 U.S., which was far below the $0.94 U.S. consensus forecast among analysts.
Revenue in the quarter totaled $1.59 billion U.S., which also fell short of expectations for $1.93 billion U.S. in sales.
Management blamed the poor showing on a decline in investment banking activity.
Revenues from investment banking during the quarter totaled $700 million U.S., down 3.6% from a year earlier.
Advisory revenues rose 17% to $397.8 million U.S. However, equity underwriting fell 39% to $128.5 million U.S.
Jefferies CEO Richard Handler said in the company’s earnings release that capital markets have become “more challenging” due to the uncertainties that have arisen around U.S. trade policies and geopolitical events.
Deals such as mergers and acquisitions (M&A) and initial public offerings (IPOs) have not ramped up as expected, added Handler.
Despite the disappointing quarterly results, Jefferies maintained its quarterly dividend payment to shareholders of $0.40 U.S. per share. The next dividend is payable on May 29.
Jefferies’ stock has declined 23% so far in 2025 and is down another 5% on news of the company’s latest results. The share price is currently at $57.07 U.S.
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