Research Alert: Challenging Market Conditions Weigh On Jef's Feb-q Results

12:15 AM EDT, 03/27/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

JEF reported Feb-Q EPS of $0.57 missing consensus of $0.94, while net revenue declined 8% Y/Y to $1.59B, falling $270M short of expectations. Investment banking net revenues rose 7% to $726M, driven by a 17% increase in advisory services and 54% growth in debt underwriting, though equity underwriting declined 39%. The capital markets segment showed mixed results, with equities revenues up 10% and fixed income revenues down 18%. Asset management faced significant headwinds, with net revenues declining 30%, primarily due to lower investment returns in a difficult market environment. The firm maintained solid expense discipline, with total non-interest expenses declining to $1.44B from $1.52B, while the compensation ratio improved to 52.8% from 53.3%. Despite near-term challenges, we remain optimistic about renewed momentum in M&A and capital markets activity. Management noted strong dialogue around potential deals and a growing high-quality backlog, suggesting potential improvement in deal activity.

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