Jefferies Financial Group Inc (NYSE:JEF) stock rose 3.44% (As on June 28, 11:18:47 AM UTC-4, Source: Google Finance) after the company posted second-quarter profit that edged past analysts’ estimates as robust performance in the investment bank’s capital markets business cushioned a slump in dealmaking. Investment banking net revenue tumbled 26% to $510 million at Jefferies, weighed down by subdued mergers and acquisitions, while capital markets net revenue surged 30% to $543 million in the quarter. Net earnings attributable to common shareholders of $12 million, including $72 million of pre-tax losses related to OpNet.

Moreover, Investment Banking net revenues of $510 million with solid equity capital markets activity but lower advisory net revenues, consistent with a significant decline in global mergers and acquisitions volume. Equity and Debt underwriting net revenues were higher than the same quarter last year, with the increase in Equity underwriting net revenues, driven by a favorable equity market, being partially offset by a decrease in Debt underwriting net revenues, in line with dampened industry-wide deal activity. Capital Markets net revenues of $543 million were higher compared to the prior year quarter, with Equities and Fixed Income net revenues increasing from the year-ago quarter primarily driven by improved market conditions. Asset Management net revenues of negative $22 million were primarily due to losses from OpNet. Additionally, we sold our interests in Idaho Timber in the third quarter of 2022 and spun-off our interests in Vitesse Energy in the first quarter of 2023.

JEF in the second quarter of FY 23 has reported the adjusted earnings per share of 28 cents, beating the analysts’ estimates for the adjusted earnings per share of 27 cents, according to calculations by Refinitiv IBES. The company had reported 22 percent fall in the adjusted revenue t to $1.04 billion in the second quarter of FY 23.

Additionally, the company has increased the share buyback authorization back to a total of $250 million. The company has repurchased 2.2 million shares of common stock for $67 million, at an average price of $30.88 per share, including 2.0 million shares of common stock in the open market for $61 million.

Meanwhile, Jefferies has recruited 21 new managing directors in investment banking since the start of its 2023 fiscal year. That is a sharp contrast with larger rivals, such as Goldman Sachs Group Inc. and Morgan Stanley, which have laid off thousands of employees.